Newsletter summary

The progress of soybean harvest in Argentina is lower than expected.BaccaratlightProduction estimates are likely to be damaged; Brazilian soybean production is expected to be slightly lower than the previous month, with severe losses in Rio Grande do Sul affected by floods; Malaysia's palm oil stocks increased in April and exports fell in the first 10 days of May.

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The soybean yield forecast of Brazil is lowered and the harvest progress of Argentina is slow.

Recently, there have been a series of important developments in the global protein meal and oil futures market. The progress of soybean harvest in Argentina has been slowed down due to low expectations of per unit yield and some delays in the northeast region. As of May 8, the harvest rate and yield per unit area were 47% respectively.Baccaratlight.8% and 3Baccaratlight.21 tons per hectare, if the trend continues, it may affect the current 51 million tonsBaccaratlightThe production estimate. In addition, Brazil's soybean production forecast was also slightly reduced by the AgResource, which reduced its annual output for 23 to 24 to 144.59 million tons from 145.46 million tons in the previous month, while the state of Rio Grande do Sul lost 1.325 million tons due to floods.

Malaysia Palm Oil stocks increase, exports decrease

The Malaysian palm oil market also shows key changes. According to the latest MPOB report, palm oil stocks rose 1.85 per cent to 1744459 tons in April from a month earlier. Meanwhile, palm oil exports fell 6.97 per cent to 1234208 tons in April, while production increased to 1501941 tons, up 7.86 per cent from a month earlier.

The future inventory forecast is divided.

Looking ahead, market surveys disagree on Malaysian palm oil inventory forecasts for April 2024. A Reuters poll shows a 2% decline, while Bloomberg forecasts a 4.7% decline. On the production side, both are expected to increase, but exports are expected to decline, with Bloomberg forecasting an even bigger decline of 8.3%.

Palm oil exports fell in early May

In addition, palm oil exports from May 1 to 10 were 362790 tons, down 14.76 per cent from 425603 tons in the same period last month, according to data provided by AmSpec, an independent inspection agency in Malaysia.