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% 30 million 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.
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.