Authority predicts global soybean production to exceed consumption

The famous oilseed analysis agency “Oil World” recently predicted that the global soybean production in 2010/11 may reach 257.27 million tons, which is higher than the estimated annual consumption of 253.8 million tons of crops. The 2009/10 soybean production and consumption amounted to 260.7 million tons and 237.3 million tons, respectively. Despite the projected increase in consumption in 2010/11, global soybean stocks at the end of the year may increase from 68.83 million tons in the previous year to 72.3 million tons. "Oil World" stated that it is expected that soybean prices will tend to weaken in the coming months, which will increase relative to the price of rapeseed and sunflower seeds. Following the large harvest of US soybeans, crop production in South America will decrease. The demand for soybeans will remain strong, partly due to the reduction in global rapeseed production.