December 26, 2006

US soybean exports exceed 1 billion bushels

Soy farmers in the US have once again outdone themselves in the international market by capping off 2006 with combined soybean and soybean meal exports reaching 1.2 billion bushels.

More than 937 million bushels of soybeans and over 282 million bushels worth of soybean meal were exported this year, according to the United Soybean Board (USB).

China continues to be the number one market for US soybeans, buying just over 356 million bushels in the 2005/2006 marketing year. Mexico came in as the top export market for both soybean meal and soybean oil.

Mexico's livestock industry has been flourishing, with the result that consumption of soybean meal in feed rations has gone up, noted Terry Ecker, USB international marketing chair.

Besides, the North American Free Trade Agreement has brought the US back to nearly 100 percent market share in Mexico. Also, due to Mexico's proximity, increased freight rates have not affected the price much unlike the situation in other international markets.

The future demand for soy consumption abroad looks bright with new opportunities in aquaculture, foods and other industrial products. Containerised shipping is another exporting opportunity for soybeans, offering benefits to importers through less handling during shipping. This form of shipping also enables importers to order smaller, customised amounts of soybeans rather than importing via large freight ships.