US soy stocks seen lower in March

US soy stocks at the beginning of March were 35.63 million tonnes, down by 1.5 million tonnes in the same period last year, according to estimates by Hamburg-based oilseeds analysts Oil World.

This was 670,000 tonnes down on Oil World's previous estimate on February 26 and would be the lowest US March stock level since 2004.

"The safety net to cushion any supply disruptions in South America or crop problems in the US this summer is thus unusually thin," it said. However, it also said that processors in the US are mainly concerned about the loss of export demand, primarily for soymeal, to the South American competitors.

Oil World said in February that soymeal prices would have to fall to generate new demand in the face of larger supplies than last year.

US crushers enjoyed unusually strong soymeal export demand in past months but sales have come to a "virtual standstill" as global buying interest has shifted to South America, it said.