A bigger than expected oilseed crop in Latin America is likely to offset a poor harvest within India. The USDA also report that US farmers will plant an extra 1 million acres of soyabeans in 2015/16 compared with 2014/15, mostly replacing corn across the corn belt, and cotton across some of the Southern States. US peanut plantings are also expected to be up by 9% compared with 2014/15, as farmers shift away from cotton. Cotton prices fell to a six year low last year, and have failed to recover since.
The expectation of increased soyabean plantings in the US has put pressure on global soyabean prices, along with the increased harvest in South America, and an end to a transport related industrial dispute in Brazil.