December 3, 2008

Lower US soy stocks in December seen


US soy stocks fell to 61.4 million tonnes on December 1, 2008, the lowest in 5 years, Hamburg-based oilseeds analysts Oil World observed on Tuesday (Dec 2, 2008).


But the global market will be helped by rising Argentine stocks, which are forecast at a record 14.2 million tonnes on December 1, up 2.6 million tonnes on the year, it said.


US soy crushing is currently down on the year, but US exports have picked up notably since October to at least partly compensate for the significantly smaller soy exports out of South America.


Oil World observed from September to November 2008 that US soy exports rose to 9.42 million tonnes, up 490,000 tonnes on the year and 500,000 tonnes higher than official US figures.


Argentine farmers have been reluctant soy sellers so far this year and are currently storing record soy volumes on farms, it said.


The farmers have been strong holders of their soy as a sign of protest against government policies, primarily due to high export taxes and low market prices, added Oil World.


Low farmer selling is believed to have cut Argentina's September to November soy exports.

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