Global soy prices seen to fall on better harvest
Soy prices may decline on growing evidence of larger output in Brazil and Argentina, the world's second and third-largest producers, according to Oil World.
Prices of US soy arriving in Rotterdam may fall to significantly below current levels to around US$350 per tonne in the second half of the 2009-10 marketing year after averaging US$428 in the six months beginning October 1.
The average price of US soy arriving in Rotterdam may decline by 9% to US$380-390, according to Oil World.
Still, Argentina and Brazil farmers are slowing sales after a recent fall in prices, it said. Strong energy prices have increased production costs.
Meanwhile, soyoil is currently not sold aggressively because it has to make up for the value in crushing lost to weakening prices of soymeal. Soyoil is also supported by the firmness in palm oil, it said.