The production prospects for 2024/25 global soybeans are also positive. The International Grains Council forecasts global soybean production at 415 million tonnes, up 6% from the 2023/24 season. This is based on the expected large harvest in the US, Brazil, Argentina, India, and Paraguay, among other major producers.

Still, given that nearly half of the production is by the southern hemisphere producers, specifically South America, we view these data as tentative until the start of the season in the region in about two months. Assuming the current estimates materialize, the 2024/25 global soybean stocks would lift by 16% year-on-year to 79 million tonnes.

Such an increase in the harvest and supplies would add downward pressure on worldwide soybean prices, which is favourable for the animal feed industry.


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