Stronger US 2008-09 soy exports seen on increased China sales

US soy exports to China in the 2008-09 marketing year are higher than expected, pushing the overall US export forecast by 10 million bushels to a record-level of 1.25 billion bushels, the US Department of Agriculture said Wednesday (June 10).

 

Competition from Argentine exports, meanwhile, is weaker than expected, the USDA said in its monthly World Agricultural Supply and Demand Estimates report.

 

"Projected soy exports for Argentina for 2008-09 are reduced 2 million tonnes to 5.4 million, the lowest in nine years," the USDA said in the report released Wednesday.

 

It's not just a lack of competition that's benefitting US exports, though. China will be buying more soy than expected for the 2008-09 marketing year, the USDA said. China's total 2008-09 imports are now forecast to total 38.8 million tonnes. That's up from last month's forecast of 37.5 million tonnes.

 

The forecast for Chinese soy imports in the 2009-10 marketing year is unchanged at 38.1 million tonnes.