Soybean Price Drops, May Not Last Long

Aug 08, 2012 05:16 AM EDT | By Sharon Robinson

soy
China might soon begin exporting soybeans from its stockpile.
(Photo : flickr.com/Wisconsin Department of Natural Resources)

The price of soy bean was observed to have dropped at the Chicago Board of Trade, to around $1.70 less than what it was a month ago. But, severe rationing of soy beans may not allow this drop in price to last very long.

Like Us on Facebook

Soybean prices have only 'limited' potential to fall despite the stabilisation of the US crop, thanks to the 'staggering' slump in stocks in rival exporting countries, Oil World, an online business magazine said.

Oil World added that soybean stocks in Argentina, Brazil, Paraguay and Uruguay- South America's top four exporters- had "plummeted to only an estimated 45.4m tonnes, a staggering 22.5m tonnes, or one-third, below a year earlier," as of the start of this month.

South American soybeans were also affected by drought, not unlike the soybeans in the US, but, they were harvested earlier this year.

According to data, U.S. soybeans have stabilized. But, it may not be enough fill the void being created by the depletion in South American soy exports.

"Severe demand rationing will be required, considering the sharply-reduced South American soybean stocks currently available and the prospective unusually-small US soybean stocks of, or below, 4.3m tonnes as of end-August 2012,"Oil World said.

 Analysts believe that Brazil, which is currently exporting a vast amount of soy beans to other countries, is set to run out of rations in a couple of months. Livestock companies and food processors are worried.

According to Bloomberg, demand from Asian buyers China, Japan, South Korea and Thailand rose 21 percent higher in the April-to-June quarter to 17.4 million tonnes. Import of soybean meal, used as animal feed rose by 7.7 percent.

"The latest import statistics for June do not yet reveal any signs of rationing," Oil World said. "It is interesting to see that the four Asian countries sharply raised imports of soybeans and soya meal from Brazil in April/June. But this cannot be sustained. In fact, we expect this trend to be reversed, due to a lack of South American supplies."

© 2015 Food World News. All rights reserved. Do not reproduce without permission.
Get the Most Popular Food Stories in a Weekly Newsletter
TrendingOn The Web
Food Biz
Chicago School Officials Address Junk Food

Latest Trend Show Soda Losing Its Appeal Fast

A recent Mintel study shows that a quarter of American no longer ordering soft drinks in restaurants compared to a year ago.

McDonald's Reports Record November Sales Up 14.9 Percent

Unusual McDonald's Outlet Offers No Seating For Patrons

A new McDonald's concept outlet has to dining area. Instead, it offers a 'walk up" window to serve customers on foot. Food from this particular McDonald's store are all ordered to go.

Stall Holders Brave The Extreme Cold To Sell Food On The Wintry Roads Of Siberia

Pineapple & Bubblegum Flavored Strawberries Launched in Australia

Raintree Nursery has launched pineberries (or pineapple flavored strawberries) and bubblegum flavored strawberries in Australia, which are absolutely "fabulous".

Food Tech
Mmm... breakfast burrito

Burrit-OH! App: True Love Might Just Come With An Extra Hot Sauce

A new app wants you to find your perfect match solely based on burrito preferences.

Shake Shack Raises Prices For Upcoming IPO

Environmentally Conscious Canadian Creates An App For Budget Foodies

Feeling responsible for the planet, Pellegrini decided to make an app that could prevent leftover foods in eateries from making a trip to the landfill.

Planet Mars Shows Signs Of Liquid Water

Vegan Diet Could Attract Alien Activity

Cosmic mythologist and medical astrologist Laura Magdalene Eisenhower, posited that our diet as humans play an important role in attracting alien life into Earth.

Real Time Analytics