Total use of soybean oil in October was down markedly from October 1994, which also contributed to higher stocks. Export sales and shipments of U.S. soybean oil are significantly below this time last year. But lower U.S. prices should soon perk up exports. U.S. soybean oil prices have fallen steadily throughout 1995, from 29.0 cents in January to 25.4 cents in November. Concerns about South American production should keep prices from sinking much further, however.
China remains the key player in the world oil market.
However, China is currently taking much of its soybean oil imports from South America, so U.S. oil exports likely will not pick up for several more months. Rain returned to most of Argentina's soybean and sunflowerseed producing areas, providing relief from the severe drought. Both Argentine sunflowerseed and soybean yields were raised this month, boosting soybean and sunflowerseed production to 12.7 and 5.8 million metric tons, respectively. Corn that has already been planted in Brazil is in poor condition, so an improvement in moisture conditions could shift some acreage to soybeans through replanting. Signs of larger area and yields are driving crop prospects for rapeseed in India to a near-record 6 million tons.