USDA report suggests continued surplus for soya

Published 13 May 15

The first USDA World Agricultural Supply and Demand Estimates report for the new season crop suggests this year’s soya harvest could result in another strong crop, providing no significant weather event. While the USDA projects an increase in demand, it is not expected to be significant enough to outstrip supply. If these preliminary forecasts are recognised then it is unlikely soya prices will rise significantly any time soon.

For grains, the forecasted supply and demand would suggest a marginal surplus. However, as this is the first report and the margin is quite tight, it is too early to determine what the impact on prices could be. Once more information is released in the coming months there should be more clarity over any potential price movements.