July 11, 2012

China to drive soymeal demand for 2012-13

In 2012-13, China will lead the soymeal demand worldwide for the sixth consecutive year amid rising hog herds in the country raising exports from US and the other major soymeal manufacturers.

According to USDA China is estimated to consume a record 49.86 million tonnes of soymeal in 2012-13 up 7.3% compared with last year and the country may have a record 690 million hogs. While the soy crop damage caused in the major producing regions in the globe has raised the price of soy and its derivatives.

According to USDA World soy inventories may drop to 53.36 million tonnes at the end of this crop year 24% lower than last year. Soymeal is the major ingredient used in feed for pigs and cattle. In CBOT soy for July delivery traded up US$0.10 to US$4.82 per bushel on July 9.