Global soy prices seen to weaken
According to Hamburg-based oilseeds analysts Oil World forecast on Tuesday (April 6), global soy and soymeal prices are likely to come under pressure in the near to medium term.
The end of the strike by Argentine port workers was likely to raise shipments of soy and products from South America in April and May, it said. Both Argentina and Brazil were harvesting bumper soy crops, increasing world supplies.
"At the moment, soymeal supplies are still tight in the importing countries, keeping prices relatively tight in the cash market," it said.
However, analysts expect them to come under increasing pressure from May onwards, when stocks start accumulating and a lack of demand for the remainder of this season will become of increasing concern.
Additionally, analysts also saw considerable downward potential for soymeal in the medium term, also pulling down prices of rapemeal and other oilmeals.
The USDA's latest forecast of larger soy plantings by US farmers was likely to remain a bearish factor in the market.