A Taste of Wellness for Savoury and Snacks
Givaudan
Brazil's soybean crop is now about 45 per cent harvested and, according to the ASA, analysts now expect the country's production to come in at 53 million tonnes, 2.75 million lower than previously expected. A lower harvest that will impact already high prices.
Droughts in Argentina, another leading soy producer in South America, have led to a cut in yields with analysts expecting Argentina's soybean production to be 34 million tonnes, about 1 million tonnes less than the Argentine agriculture secretary's forecast earlier in March. The US department of agriculture estimates 2003-04 Argentine soybean production at 36.5 million tonnes.
Ingredients companies sourcing soy have seen the price rise steadily over the last year as droughts in the US, a leading producer, hit the soybean harvests, sending prices to seven year highs.
In February this year the world's leading oilseed processor Bunge reported that its agribusiness sector had felt the impact of droughts and despite improvements in the edible oils area, the figures were hit by increases in the raw materials, 'primarily soybean oil.'
ASA warns this week that US sales of soy and crush pace remain too high and 'threaten to drive ending stocks below the current USDA projection at 125 million bushels', already at a 27-year low. An event that would lead to a further rise in price as demand presses heavily on supplies.