Soybean processing and exports from the US, Argentina and Brazil, the largest shippers, were below expectations in the second quarter on reduced Chinese imports and competition from palm oil, Oil World said in a Tuesday released report.
Soybean crushing into meal and oil and exports from the countries, known as the G-3, fell 5% from a year earlier to 54.7 million metric tons, the Hamburg-based researcher said in a report. Usage and exports declined 7% to 17.5 million tons in June, according to the report.
“A slowdown in demand for soy meal was observed in several countries recently,” Oil World said. It also cited “a temporary slowdown of Chinese soybean imports, deteriorated crush margins and a decline of soybean crushing in several countries as well as increased production and export competition from the more attractively priced palm oil”.
Soybean prices have fallen 1% this year in Chicago trading on reduced demand from China after surging 34% in 2010. Palm oil has declined 18%. US soybean usage and exports, or disposals, fell 3.1% from a year earlier to 4.13 million tons in June, according to the report.
Argentine usage and shipments fell 16% to 5.23 million tons for the month, Oil World said. Brazilian disposals that gained 10% to 8.15 million tons were too small to offset declines in the US and Argentina, Oil World data show.
Soy oil exports increased 0.9% from a year earlier to 2.17 million tons in the quarter as stronger Chinese demand outpaced reduced Indian purchases, Oil World said.
“The latest export statistics confirm increased Chinese import requirements” Oil World said. Exports gained only slightly “because of a significant reduction by more than 50% in shipments to India. This is mainly explained by the noticeable shift in the Indian preference to palm oil in response to its improved price attractiveness.