USA: US grain and soybean supplies and price levels to dominate world markets - analysts

U.S. grain and soybean supplies and price levels will dominate world markets of corn and soybeans till the arrival of the southern hemisphere crop, experts forecast.

USDA, IGC and most analysts agree that the supply and demand balance is extremely tight for soybeans, prices on the CBoT of US$ 20,- per Bushel (US$ 735,- per ton) are deemed necessary to reduce the crush and export demand to desired levels. Corn rationing has started in several ways, herd liquidation and less poultry production in the U.S., replacement of corn by wheat and other grains in the feed industry all over the world, and a lower ethanol production, so far without any changes in national regulations.

Reduced usage of U.S. corn of totally 40 mln tons out of a supply of 290 mln tons is necessary and happening at present board prices of US$ 8,- per bushel +/- 10 % (315,- per ton).

21 September, 2012