Global Soybean Enters Period of Increased Production, Price Trend Weakens

In the context of overall high soybean production in South America and a concentration of Brazilian soybean exports, market attention has turned to soybean production for the new year. In May, the US Department of Agriculture predicted that global soybean production would enter a period of growth in the 2023/24 season, with output reaching a record-breaking 411 million tons, an increase of more than 40 million tons or 10.8% compared to the previous year. Among these, US soybean production is expected to increase by 6.36 million tons to 123 million tons, with end-of-season stocks loosening from tightness. With strong expectations for increased production, global soybean prices have weakened, causing new contracts for US soybeans to fall near cost levels.