US soyabean producers could end up with a glut despite drought in Argentina, as export markets such as China turn to Brazil for supplies. The US Department of Agriculture (USDA) predicts a surplus of 530 million bushels of soyabeans at the end of the year in August, 75% more than 2017 and an 11-year high. In February, the USDA also cut exports to 2.1 billion bushels, 3% less than the previous year. Soybeans are one of America’s most important exports.
US soyabean producers could end up with a glut despite drought in Argentina, as export markets such as China turn to Brazil for supplies. The US Department of Agriculture (USDA) predicts a surplus of 530 million bushels of soyabeans at the end of the year in August, 75% more than 2017 and an 11-year high. In February, the USDA also cut exports to 2.1 billion bushels, 3% less than the previous year. In addition, the lucrative soyabean meal sector has almost reached maximum crushing capacity and analysts said it could struggle to offset losses from export cuts.