Soybean output seen climbing next season as area expands
Worldwide production of soybeans will likely reach a record of 301.2 million tons for the 2014/15 season as farmers increase their planting area according to Hamburg-based Oil World. Production is estimated to be 6.1% higher than the previous year with total global harvested area reaching an all-time high of 118.5 million hectares (292.8 million acres) – 4% more than the year before. Competitive prices on the global market are creating record planting especially in the Northern Hemisphere, and barring an extreme weather events, record soybean harvests will likely be seen in the U.S., Canada, Russia, Ukraine, and the EU. The higher output resulting from these harvests may cause a decline in prices which will discourage farmers in South America from significantly expanding their soybean production. Oil World predicts that soybean production in Brazil may increase 3.4% to 90 million tons for 2014/15 and production in Argentina may increase 1.8% to 56 million tons. World soybean stockpiles are forecast to be 90 million tons at the end of the 2014/15 season – 23% higher than the year before.
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