Soybean Demand Picture Clouded for 2009
From demand issues in China to production issues in South America, the future is muddy at best in predicting demand next year.
Compiled by staff
Published: Dec 26, 2008
The U.S. soybean market faces a host of uncertainties going into 2009. Will China ramp up demand? Will South America leave a gap in what orders it can fill? And just how will the showdown between corn and soybean acres play out after planting?
There's a bullish outlook for the U.S. market, according to a recent report from Dow Jones. Major economic forces will keep the market volatile, and in early 2009, there could be a limit to price gains. However, as economic stimulus programs kick in, soybeans could see gains.
There's a bullish fundamental outlook for the crop next year, with export demand already at a strong pace to start the new year and crop uncertainties in South America leading to increased U.S. demand. It's the U.S. economy that's clouding the picture, according to the report.
In essence, the report notes that rising demand for high-quality protein in Asian diets will keep pressure on the world market for soybeans - a key dietary component for livestock. This macro-force is not changing in the world economic stage.
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