July 28, 2022
Soymeal prices may rise as consumers choose chicken over beef
Major crop trader Archer-Daniels-Midland Co (ADM) said consumers, affected by the worst inflation in 40 years, are choosing chicken over beef, signalling that prices for soymeal may rise as chicken feed is made from corn mixed with soybean meal, compared to cattle that eat only corn, Bloomberg reported.
Juan Luciano, chief executive officer of ADM, said the company has lowered its projections for livestock feed demand to a range of 10 million to 15 million tonnes worldwide, but said demand for chicken feed has surpassed that of cattle as consumes change their consumption.
Luciano said because it is less expensive, chicken is where most of their soybean meal goes to, adding that as prices are still relatively high, soybean meal remains a very effective and affordable protein substitute even for wheat.
After a sharp correction that followed soybean futures, soybean meal futures are once again trading above US$400 per tonne in Chicago, the highest since July 11 on an intraday basis.