Soybean-meal price may slump by $100 a tonne
Tuesday, 8 September 2009
NEW YORK, Sept. 7 (Bloomberg): Soybean-meal prices may plunge as much as $100 a tonne in the second half of the 2009-2010 season, as output expands faster than demand, said Oil World, a global provider of information on oilseeds.
Production of soybeans in South America, home of the world's second- and third-largest exporters, may expand by 27 million tonnes in March to August from the corresponding period in the previous year as El Nino weather conditions bring more rain there, boosting yields, Oil World Executive Director Thomas Mielke said yesterday, without providing more details.
"Soybean meal demand is likely to be too small to absorb the soybean meal production in the second half," Mielke said in an interview in Cebu, central Philippines, without giving details. "Meal prices should get under considerable pressure, down by $80 to $100 from current levels."
Soybean-meal futures have fallen 8.2 per cent this quarter on expectation favorable weather in the US, the largest grower and exporter of soybeans, will boost output. Meal for December delivery fell 2 per cent to $281.10 per so-called short ton (2,000 pounds) on the Chicago Board of Trade on Sept. 4.
The decline in prices won't extend to soybean oil, Mielke said, because vegetable oil production will probably be curbed in Asia because of El Nino. El Nino, characterized by warming Pacific Ocean currents, can bring drought to parts of Asia.
Production of soybeans in South America, home of the world's second- and third-largest exporters, may expand by 27 million tonnes in March to August from the corresponding period in the previous year as El Nino weather conditions bring more rain there, boosting yields, Oil World Executive Director Thomas Mielke said yesterday, without providing more details.
"Soybean meal demand is likely to be too small to absorb the soybean meal production in the second half," Mielke said in an interview in Cebu, central Philippines, without giving details. "Meal prices should get under considerable pressure, down by $80 to $100 from current levels."
Soybean-meal futures have fallen 8.2 per cent this quarter on expectation favorable weather in the US, the largest grower and exporter of soybeans, will boost output. Meal for December delivery fell 2 per cent to $281.10 per so-called short ton (2,000 pounds) on the Chicago Board of Trade on Sept. 4.
The decline in prices won't extend to soybean oil, Mielke said, because vegetable oil production will probably be curbed in Asia because of El Nino. El Nino, characterized by warming Pacific Ocean currents, can bring drought to parts of Asia.