With China's demand growth tapering off and soy demand elsewhere flat, an era of soft prices looms -unless another large buyer enters the market. The world soy market made the past decade's feed price inflation and could also break its back. Although corn and biofuel gets most of the mainstream press headlines, it is China's soy import binge which boosted the cost of food and feed over the past decade.
Four of the top five exporters are shipping less corn than two years ago but amid a bumper US harvest and bulging inventories, markets will stay soft. Although the world has entered a period of cheap, plentiful inputs, in the case of corn, today's prices reflect yesterday's news.