Analysts expect that supplies of corn and soybeans will continue shrinking to multi-year lows in USA.
2020/21 U.S. corn stocks-to-use fell to 10.3%, also a 7-year low and down from 13.7% in 2019/20.
In the other hand South America is still running with low stocks on soy since last quarter of 2020.
Soybean meal crushers and traders in Argentina and Brazil are dealing with holdups in raw bean supply. Soybean farmers in Brazil have reduced stocks, and farmers in Argentina are disinclined to sell their inventories as a result of the government’s punitive tax and low harvest foreseen.
In that much negativity, China is still the biggest buyer.
After they could not collect the usual amounts from their old and trusted suppliers Indonesia and Malaysia, China started to import much more edible and industrial oil crops and crude oils from other regions.
As a 2nd big new customer for those regions, India and the biggest buyer China, started to drain all oil resources from worldwide and it has been caused a sharp rising on prices.