A record crop of soybeans is expected in the United States. The eyes of the oilseed market are therefore focused on sowing activities there.
The planting is going well. As of May 14, 49% of US soybean acreage was sown. The 5-year average is 36% on the same reference date. According to the US Department of Agriculture (USDA), America expects soybean production of 122.7 million tons this season. For comparison, in 2022-23 and 2021-22, 116.4 million tons and 121.5 million tons of soybeans were harvested, respectively.
Price pressure on soybeans will continue due to good plantings and expected record harvests. Brazil has also brought in a record harvest of soybeans, which means that global production for 2023-24 is higher than the previous season. According to the USDA’s latest Wasde report, global oilseed production stands at 671.2 million tons. This is mainly due to increased productions in Brazil, Argentina and the United States.
The global trade in oilseeds is expected to be slightly less vibrant in 2023-24. Although the export of soybeans is increasing, it is compensated by less trade in rapeseed and sunflower seed. Exports are declining, because major importing countries are producing more themselves. On the other hand, large exporters expect lower rapeseed production.
A record sunflower seed harvest of 11.5 million tons is assumed for Europe. That is 2.2 million tonnes more than was produced last season (2022-23). The rapeseed crop is also growing well in Europe. Significant EU production is expected. In addition, Canada expects to harvest more rapeseed.