August, USDA supply-demand report was super bearish for soy complex. As USDA estimated 51.6 bpa yield compared to 49.6 bpa average, this is about 2 bpa higher than expected, whereas end stocks estimated to 105.9 MMT higher by 7.67 MMT from last month forecast and 10.33MMT higher by previous year.
A sharp rise in production numbers led a hike in stocks numbers. production higher by 7.62 MMT from previous month forecast and 30.40 MMT higher estimates from last year. higher production offsets the lower beginning stocks.
Soy oil stock revised to the lower side in the August report. However, the significant rise in the soybean production and stock weighed on soy oil prices.
Soybean supply will remain record this year. Along with USA, South America to Asian country crops is in a good pace. Ongoing India bean planting this season is going with favourable weather condition and expecting better crop this year.
Brazil’s, Conab’s estimates, soybean crop at 118.98 MMT vs 118.88 MMT in July and USDA at 120.5 MMT. Argentina soy crop may resume this year with normal trend after a severe drought in last year.