With feed demand growth shifting from China to Southeast Asia, South American soy exports will boom, but in a very segmented, differentiated manner. Along with playing a huge role in putting meat on European and Asian tables, South America is a key feed crop supplier. Even so, the center of its export growth is shifting, from China, which has dominated the market for over two decades, to Southeast Asia.
Defying the past decade's volatility, recent feed crop estimates conform to earlier optimistic supply projections and significant demand drivers are no longer relevant, making for soft prices. The USDA released one of its most uneventful, hum-drum late Spring reports in several years, as the agency kept its figures for corn production, demand, exports and inventories unchanged.