A supply response from the US will not be enough to lead the global soybean market back into surplus in 2012-13 after La Nina devastated South American crops, Macquarie analyst Chris Gadd says, addressing the Outlook For Agriculture conference in London. The bank expects US planted area of around 76M acres of soybeans and up to 94M acres of corn, as economic incentives for farmers to turn to the oilseed arrived late in the planting window. Gadd says the market will stay tight as South American countries are drawn away from export markets in 2012 due to extreme drought, as the bank lowers its view on Brazil's soybean crops to around 68M tons.

(michael.haddon@dowjones.com)

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(END) Dow Jones Newswires

March 13, 2012 12:22 ET (16:22 GMT)