World Soybean Output Seen Lower on Reduced Crop in Argentina

Aggregate world soybean production will decline from last month’s forecast because of dry weather in Argentina, the biggest shipper of soy-based animal feed and vegetable oil. Inventories will rise because of slowing demand, the U.S. government said.

Argentina’s crop will be 51.5 million metric tons, down 2.8 percent from February’s forecast, while world production will decline 0.6 percent to 268 million tons, the U.S. Department of Agriculture said today in a report. A Bloomberg survey showed analysts expected production in the world’s third-biggest grower to be 51.2 million tons after dry weather damaged crops earlier this year.