Demand for soybean meal & soybean oil steady
The USDA released a report recently on Oil Crops Outlook. Livestock and poultry profitability has brightened as ratios of feed costs to values for meat-producing animals have gradually declined. Moderately higher market weights in 2013 are anticipated for nearly all animal types.
Longer feeding periods for more animals mean that more soybean meal would be consumed. Thus, the domestic disappearance of soybean meal for 2012/13 is forecast up 150,000 short tons this month to 29.9 million.
Based on near-record sales commitments for this time of year, USDA also increased its forecast of 2012/13 soybean meal exports to 8.8 million short tons from 8.7 million last month. US exporters of soybean meal have gained market share in
Asia, North Africa, and the EU. All of these regions have seen year-over-year declines in shipments from Argentina the world’s top exporter of soybean meal. Along with the soybean oil output generated by additional crushing, a higher extraction rate is expected to boost 2012/13 production which is forecast 275 million pounds higher this month to 19 billion pounds. Part of the expansion in soybean oil supply is likely to be exported. For 2012/13, the export forecast for soybean oil is raised 150 million pounds to 2.3 billion.
You can read this report on the USDA website.
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