Oilseeds Report 2012 : World Markets and Trade

OVERVIEW
Global soybean production is lowered due to a reduction in Argentina. Global trade is marginally up with a slight increase in the EU and Paraguay. World importsfor soybean meal and oil are down. The season-average U.S. farm price remains unchanged.

SOYBEAN PRICES
U.S. export bids, FOB Gulf, in February averaged $571 per ton, up slightly but virtually the same level from the previous month. Prices are supported by continued strong foreign demand, as buyers look to the U.S. as exportable supplies in Brazil face logistical challenges resulting in shipping delays.
As of the week-ending February 28, U.S. soybean commitments (outstanding sales plus accumulated exports) to China totaled 21.3 million tons, compared to 20.0 million a year ago. Total commitments to the world are 35.0 million tons, compared to 29.9 million for the same period last year.

2012/13 TRADE OUTLOOK
• U.S. exports of soybeans and oil are unchanged.
• Argentina’s soybean meal exports are down 1.0 million tons to 27.0 million on reduced crush impacted by a smaller crop.
• China’s soybean meal exports are up 100,000 tons to 1.2 million stimulated by reduced competition from Argentina in key Asian markets.
• EU soybean imports are up 300,000 tons to 11.6 million to reflect large purchases from the United States, while soybean meal imports are cut 700,000 tons to 20.5 million on a slower pace.
• Japan’s rapeseed imports are raised 300,000 tons to 2.3 million to reflect continued strong demand for crush.
• Malaysia’s palm oil exports are raised 425,000 tons to 17.2 million with strong demand incountries including China, India, the EU, and Egypt.
• Ukraine’s sunflowerseed meal exports are boosted 200,000 tons to 3.6 million on strong sales to the EU.