June 28, 2007

US 2007 soybean exports to South-east Asia seen flat at 2 million tonnes
 

US soybean exports to South-East Asian countries in 2007 may not change much from last year's level of 2 million tonnes, John Lindblom, regional director of the American Soybean Association said Thursday (Jun 28).

"Around 50 percent of our exports is for food use and that generally is very stable," said Lindblom who heads the South-east Asia division of the association.

Speaking on the sidelines of Grain Shipping Conference 2007, Lindblom said global soybean prices will continue to rise this year because of lower acreage in the US and rising demand from the biodiesel sector.

Soybean prices have risen by nearly 14 percent since the start of the year and by about 23 percent from the same period last year amid increased switching of acreage to corn and generally strong demand from the biodiesel industry.

"The US already has 110 biodiesel plants operating while 80 more may start operations soon. This is creating a huge demand for soyoil," he said.

He added that globally, the stock-to-use ratio for soybean is quite low right now which is adding to the bullishness in the market.