- There has been "little evidence of a slowdown in global soybean consumption", with US use rising at an "alarming rate."
Rabobank hiked forecasts for grain and oilseed prices, to above values markets are pricing in, saying "high and even record high" values need to be sustained to shrink demand to match drought-hit supplies.
The bank lifted by up to $1.50 per bushel its forecasts for quarterly average soybean futures prices in Chicago, cautioning that market rises to record highs had "not yet caused a severe decline in usage" required as the US faces up to a drought-hit harvest.
"The smaller crop size and pipeline carry-over will require the largest year-on-year drop in US soybean consumption on record," of more than 160m bushels, the bank said.
However, there has been "little evidence of a slowdown in global soybean consumption", with US use rising at an "alarming rate", as highlighted by industry data earlier this week on processing volumes last month, and Chinese demand "likely to be a key support to prices".
For more, see: 'Record high' grain prices here to stay - Rabobank