May 2, 2007

South America seen to post record world soy surplus in 2006/07

Big South American soybean crops will ensure a record world surplus in 2006/07, Hamburg-based analyst Oil World said on Tuesday (May 1).

The projection put global production at 233.78 million tonnes against 222.01 million in 2005/06 and 2006/07 consumption of 226.95 million tonnes.

Argentina is seen to harvest 45.5 million tonnes this year, up from 40.80 million last season, it said.

Brazil's crop was forecast at 58.5 million tonnes from 56.9 million.

Paraguay's harvest was put at a record 6.0 million tonnes from 3.9 million.

Oil World said the net result is a further increase in world stocks of soybeans to an estimated 66.9 million tonnes at the end of this season, which is up by 6.8 million tonnes from the previous record registered from last year.