Argentina soy forecast receives boost 

Argentina's 2010 soy crop is likely to rise to 52 million tonnes from 32 million tonnes in 2009, up one million tonnes from the previous estimate in January.

Brazil's 2010 soy crop is forecast at 65.5 million tonnes from 57.5 million tonnes last year, at the upper end of Oil World's previous forecast of 64-65 million tonnes.

There is currently a wide range of estimates in the two countries, said the Hamburg-based analyst, adding that some Argentine crushers forecast their country's crop at 54 million to 55 million tonnes.

But concern remains about disease and weather damage to soy plantings, it said.

With ample supplies becoming available in South America, soy crushings in Brazil and Argentina are expected to increase by a combined 5.5 million tonnes in March/August 2010 from last year.

Along with larger soy crushings in China, this was likely to raise the global crush to about 109 million tonnes in March/August 2010 from 99.9 million tonnes in the same time in 2009, said the analyst. This will create supply pressure in soymeal and enforce a significant decline in soymeal prices. In turn, soyoil will have to finance a larger share of the crush value.

But soyoil prices were likely to remain firm because of a shortage of sunflower oil, it said.