Aug 22, 2014 Last Updated: 05:20 AM EDT

Soybean Price Drops, May Not Last Long

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

  • print
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.

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.

Like Us on Facebook

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."

© 2014 Food World News. All rights reserved. Do not reproduce without permission.
Featured Video : California Battles Citrus Threat – Residents Called on to Help
Get the Most Popular Food Stories in a Weekly Newsletter
TrendingOn The Web
Food Biz
1

China Halts Some U.S. Pork Imports Over Feed Additive Use

China has barred pork imports from six U.S processing plants and six cold storage facilities effective on Wednesday to enforce its ban on the use of a feed additive that promotes lean muscle growth, the U.S. Department of Agriculture said on Tuesday.

1

Russian Sanctions Threaten Both Europe's Farmers And Policymakers

Pascal Sauvetre, an apple farmer in Poitou-Charentes on France's Atlantic coast, has a headache beyond the usual concerns about weather and tree fungus: Polish apples.

1

Belgian Infant Contracts HIV Via Breast Milk

In 2012, a one-year-old boy in Belgium acquired HIV through his mother's breast milk, a rare but not impossible form of transmission in industrialized countries, doctors say.

Food Tech
ground beef

Nearly 2 million pounds of potentially E.Coli infected beef shipped nationwide, 11 people sick

Eleven people have been hospitalized following an E. coli outbreak which has been linked to burgers consumed in restaurants in four states, according to reports.

Viagra

Ice Cream Flavor Treat Made With Viagra and Tastes of Champagne

Forget about talking the bill pill, a British ice cream maker has created a flavor that includes 25 mg of Viagra per scoop.

Starbucks

Tip Your Starbucks Barista From Your iPhone

Starbucks announced that it will improve its mobile application that will allow customers visiting its stores to tip their baristas from their iPhone.

Real Time Analytics