Rabobank: Supply Slide Saves Grounded Demand

Agricultural commodities were heavily impacted by trade wars, African swine fever, and erratic weather in 2019. According to the RaboResearch report "Outlook 2020: Supply Slide Saves Grounded Demand," many of these factors will remain key for agri commodity prices in 2020.

In 2019, agri commodity markets were impacted by several unprecedented incidents and uncommonly severe conditions. China's hog herd declined significantly, as a result of African swine fever (ASF). This drastically weakened demand for feed and, combined with the US-China trade war, resulted in a significant slowdown in the global soybean trade.

Meanwhile, record US corn- and soybean-planting delays drove corn prices from three-year lows to six-year highs within a few weeks. Then, improved...

Cargill to Invest $225 Million at Facility in Sidney, Ohio

Cargill is expanding its integrated soybean crush and refined oils facility in Sidney, Ohio, to better serve area farmers and to meet growing demand for protein and refined oils.

The company will invest approximately $225 million at the Sidney site, increasing crush capacity and modernizing operations. The investment creates greater market access for farmers’ crops in the area and allows those farmers to deliver their soybeans more efficiently, as the upgraded plant will unload trucks at a much faster rate.

“Farmers are at the core of our business. This investment will help us provide them a better experience when they choose to sell their crops to us,” said Don Camden, commercial leader for the eastern region of...

Reports and Data: Soy Protein Ingredients Market to Reach $16.6 Billion by 2026

According to Reports and Data, the global soy protein ingredients market was valued at $9.7 billion in 2018, and is expected to reach $16.6 billion by the year 2026. This increase would be a compound annual growth rate of 6.9%. The consumer base of the soy protein ingredient market has increased over the years, with a rise in the number of health-conscious consumers. The soy protein ingredients market is undergoing various technological advancements. Mainly used for the production of nutrition bars, soy proteins are meeting the needs of the bar manufacturing industry through the development of various shapes, sizes, hardness, and isolates. With the changing needs of the manufacturers in the industry, processes are expected to improve.

Available in a wide range of products, soybeans are one of the few alternative proteins containing all essential amino acids. Familiar food preparations include products such as tofu, soymilk, and tempeh. Cereal blends are another product, consisting of...

China to Exempt U.S. Pork, Soybeans from Additional Tariffs -Xinhua

China will exempt some agricultural products from additional tariffs on U.S. goods, including pork and soybeans, China's official Xinhua News Agency said Friday, in the latest sign of easing Sino-U.S. tensions before a new round of talks aimed at curbing a bruising trade war.

The United States and China have both made conciliatory gestures, with China renewing purchases of U.S. farm goods and U.S. President Donald Trump delaying a tariff increase on certain Chinese goods.

China had imposed three rounds of additional tariffs on U.S. pork, including 25% increases in April and July 2018 and a 10% bump this month, raising the total duty from...

USDA Forecasts U.S. Corn and Soybean Production Down from 2018

The Crop Production report issued today by USDA’s National Agricultural Statistics Service (NASS) forecasted soybean and corn production down from 2018. Soybean production is down 19 percent from 2018, forecast at 3.68 billion bushels; corn growers are expected to decrease their production 4 percent from last year, forecast at 13.9 billion bushels.

Area for soybean harvest is forecast at 75.9 million acres with planted area for the nation estimated at 76.7 million acres, down 4 percent from the June estimate, and down 14 percent from last year. Soybean yields are expected to average 48.5 bushels per acre, down 3.1 bushels from last year. If realized, the forecasted yield will be a record high in...

United States-Colombia Trade Promotion Agreement Pays Dividends to American Farmers and Exporters

The United States-Colombia Trade Promotion Agreement (CTPA) entered into force on May 15, 2012, laying the foundation for a surge in U.S. agricultural exports. Since 2012, U.S. agricultural exports to Colombia nearly tripled from $1.1 billion to $2.9 billion in 2018. Despite its geographic proximity to major U.S. competitors Brazil and Argentina, Colombia, the third-largest economy in South America, purchases half of its agricultural imports from the United States. Preferential access from CTPA and a strong Colombian economy have allowed the United States to increase its market share from 19 percent prior to CTPA, to 50 percent in 2018. Changing demographics, a growing middle-class, and consumer trends toward more modern retail outlets is expected to keep demand strong into the future for high-quality U.S. agricultural exports.

Colombian Macro-economic Trends and Changing Demographics

In addition to CPTA, political stability and a dynamic economy have contributed to Colombia becoming the United States’ 12th-largest destination for agricultural exports, up from...

USDA Announces Support for Farmers Impacted by Unjustified Retaliation and Trade Disruption

U.S. Secretary of Agriculture Sonny Perdue today announced that the U.S. Department of Agriculture (USDA) will take several actions to assist farmers in response to trade damage from unjustified retaliation and trade disruption. President Trump directed Secretary Perdue to craft a relief strategy to support American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals to open more markets in the long run to help American farmers compete globally. Specifically, the President has authorized USDA to provide up to $16 billion in programs, which is in line with the estimated impacts of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions. These programs will assist agricultural producers while President Trump works to address long-standing...

Grain Futures Soar on Delayed Plantings

In the latest Crop Progress report, planting progress continues at a slower than expected pace—causing concern for traders and seeing corn futures up 12 to 13 cents per bushel Tuesday morning.

The USDA reported corn plantings at 30 percent completion as of Sunday, May 12. That’s less than half of what the normal 5-year average rate is at this point in the season. It’s also only a 7 percent increase from the previous week.

Rain and cool weather in the major production areas has hindered planting activities so far this season.

Emergence is also lower than expected, currently at 10 percent. Last year at this time...

Planting Progress Lags for Corn and Soybeans

In the latest Crop Progress report, the USDA shows corn plantings across the 18 primary production states is currently just 23 percent complete, which is half the normal progress made by this time over the last 5 years.

Planting progress is well-below expectations for this point in the season, having been hindered by rains throughout the Midwest where much of the crop is produced. Every state surveyed has reported lower progress rates than their respective 5-year averages.

Corn emergence is currently at 6 percent, also less than half the average rate. Seven of the 18 production states have yet to report any emerging corn.

Meanwhile, 6 percent of soybeans have been planted so far this season—also...

ARS Study Helps Farmers Weigh the Merits of Soybean Pressing Methods 

Results from a joint study by Agricultural Research Service (ARS) and Drexel University (DU) scientists will help farmers better weigh the merits of pressing soybeans on-site rather than transporting their crop to a crush (processing) facility, where the oil and meal can be extracted for sale.

Second only to corn in terms of crop value and total U.S. acres planted, soybeans are the chief source of vegetable oil for cooking and other food uses. Meal left over from pressing the beans is sold as high-protein animal feed. There are also nonfood uses of soy oil, including inks, lubricants, paints and biodiesel fuel.

In some instances, soybean growers are opting to press the oil right on the farm rather than send their beans to a dedicated crush facility. This allows them to ...