The recent surge in soybean purchases by China has helped push soybean prices higher.
Grant Kimberley, director of market development with the Iowa Soybean Association, says it’s a combination of strong Chinese demand and tight supplies in South America.
“We are about the only store in town, because Brazil and Argentina don’t have a lot for their soybean supplies, at this time anyway. They’re just planting their next crop,” Kimberley says. “So we are the main supplier in the world market and the world market is very hungry for more soybeans.”
Kimberley says China’s growing livestock sector is fueling the surge, but increased demand for vegetable oil is also a factor.
“There’s been some reductions in Malaysian palm oil production because of some of the weather conditions this past year,” he says. “That’s putting more demand for soybean oil in the marketplace in Asia. So people want to buy the soybeans, crush them, and use the oil and meal.”
Kimberley says soybean demand is also up in some other countries, including Mexico and Colombia.
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