Soy slump ending as high demand overwhelms farms

CHICAGO - The biggest rout in soybean prices in more than two years may be ending as farmers from Iowa to Brazil fail to keep pace with record demand for cooking oil and livestock feed.

The United States, the world's largest grower and exporter, will harvest 7.3 percent less this year, leading the first decline in global output since 2009, the US Department of Agriculture (USDA) estimates. Morgan Stanley expects soybeans to average $14.25 a bushel in the 12 months ending Aug 31, the most ever and 21 percent more than Monday's closing price of $11.775.

While prices began tumbling last month on investors' mounting concern that slowing growth will weaken demand for raw materials, global consumption of cooking oils hasn't fallen during a recession in the past three decades, USDA data show.