Global output supports $14 beans
Global soybean output may fall by 22 million metric tons to 23 million tons in the 2011-12 marketing year ending August 31, Thomas Mielke, executive director of the Hamburg-based Oil World publication said Monday.
World soybean output may decline to 242.9 million tons, because of an expected fall of 16 million tons in South America and 7 million tons in the U.S., Mielke told an industry conference.
Speaking at the International Oil And Oilseeds Market Forum, Mielke said output in Brazil, the world's second-largest producer, may fall to 66.5 million tons from 70 million tons estimated in January and sharply lower than the 75.32 million tons last year.
Chicago Board Of Trade soybean futures will likely climb to $14/bushel "quite soon", he said, adding the fight for acreage between soybean and corn will likely support prices. CBOT soybean futures are currently trading around $13.65/bu.
Mielke said he expects soybean futures to rally towards to $14.5/bushel or above sometime in the next four to eight weeks, depending on the progress of the South American harvest.
-Zhoudong Shangguan contributed to this article; Dow Jones Newswires; (8610) 8400 7715; firstname.lastname@example.org
(END) Dow Jones Newswires
March 26, 2012 02:11 ET (06:11 GMT)