November 25, 2009

 

US soy crop features more protein, less oil

 

 

The current US soy crop is higher in protein and lower in oil content than last year, marking a return to long-term quality levels, according to an annual industry-sponsored survey.

 

"Average US soy protein concentration was 1.2-percent higher in 2009--at 35.3 percent--and average oil was 0.5-percent lower--at 18.6 percent--when compared with 2008," said Seth Naeve, a University of Minnesota professor who spearheaded the study, sponsored by the American Soybean Association and the US Soybean Export Council. "It should be noted, however, that 2008 was a historic year for low protein."

 

The 2009 results are nearly identical to the study's historic average of 35.3 percent protein and 18.7 percent oil.

 

"One would expect lower oil/higher protein following the type of growing season we had, but the data I've seen so far is encouraging to me," said Farm Futures market analyst Arlan Suderman. "The higher protein helps soymeal compete a bit better with distilled dried grains, particularly considering some of the mycotoxin concerns in corn. That's keeping soy crush margins profitable, which gives us double-barreled demand for soy; domestic and export."

 

Distilled dried grains, or DDGs, are a byproduct of the production of ethanol from corn and are used as livestock feed. Mycotoxins, a fungal byproduct that can sicken animals if ingested, have been a concern for corn because of abnormally wet harvest conditions that have allowed mold to flourish. Mycotoxins tend to be more concentrated in the DDGs, rendering them unfit for most animal feed.

 

Regional variations in soy quality were again noted this season, which is consistent with the survey's historical trends.

 

"As is noted in most years, western Corn Belt states tended to have lower protein concentrations than the average US crop, while Mid-South and Southeast states tended to have higher than average oil concentrations," said the University of Minnesota's Naeve.

 

The study, which analysed 1,602 farmer/elevator-collected samples from 29 states, found Oklahoma-grown beans produced the greatest amount of crude protein (37.6 percent), while Mississippi soy yielded the highest amount of oil (20.3 percent).

 

The investigation also discovered that the 2009 harvest was cleaner than last season, containing a smaller percentage of foreign material, such as dirt or weed seeds, while carrying a slightly larger seed size compared to 2008.

 

Although the USDA said 94 percent of the nation's 3.3-billion-bushels soy crop has been harvested, heavy October rains meant picking had only progressed to 51 percent complete as of November 1, when the last sample was analysed.

 

"If realised, this will be the largest soy crop in history," Naeve said. "However, due to late-season harvest difficulties, a reduction in the estimated total production is expected. Many farmers have been forced to harvest soy with moisture contents of 15-20 percent (well above the 13 percent level needed for long-term storage) due to the excessive rains. It is likely that quality losses will occur, due to improper storage conditions."

 

The adverse weather also produced a direct impact on the survey.

 

"The below-normal temperatures and above-normal precipitation during the 2009 harvest season impacted the timeliness of harvesting and thus decreased the number of samples available for inclusion in the 2009 US Soybean Quality Survey," Naeve said. "Additional samples are currently being analysed, and these will be included in an updated report available January 2, 2010."