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Futures Close Report: 12th December 2017

Brazil’s association of oilseed processors, Abiove, on Tuesday raised its projection for the country’s soybean exports in 2017 to a record 67.8 million tonnes, as demand from China remains robust.  China is the world’s largest importer of the oilseeds, and purchased 52 million tonnes of Brazil’s soy in 2017.  That represents more than half of the Asian country’s total imports of the oilseed.  Abiove also increased its estimate for next year’s soybean crop to 109.5 million tonnes, up from the 108.8 million tonnes forecast in November.

Brazilian government food supply agency Conab forecast the country’s 2017/18 soybean crop at 109.2 million tonnes, an increase on last months range of estimates for 106.4 million to 108.6 million tonnes.

The USDA raised its forecast of U.S. 2017/18 soybean ending stocks to 445 million bushels, from 425 million last month, after cutting its U.S. soy export forecast due to strong competition from South American producers.  Domestic US stocks seen at 445 million bushels for 17/18 up 20 million bushels on last month.  Export forecasts were lowered by 25 million bushels.  U.S. soy exporters have seen a slow start to the marketing year, with the pace of shipments lagging well behind what is needed to meet the USDA’s bullish projections.