Soybeans on the Rise While Corn Drops Due to World Supply Gain Cuts

The price of soybeans seems to be trending upward following speculation on corn exports during the final two months of 2011. Corn fell to a two-month low on the speculation that the global production is rising and reduced overseas demand for the crop from the U.S. The country is still the world's largest export of corn, although, soybeans are on the rise.

Other countries, such as Australia and Brazil, have continued to increase output in corn harvests. Brazil is the third largest exporter in the world will raise 18 percent for a record. Meanwhile, Zambia has given permission for its Food Reserve Agency to export a record 1 million tons of corn this season.

Experts say the grain market is reaching a bearish supply outlook as corn futures have declined all year. In March, corn delivery declined 0.5 percent to $.8825 a bushel. In December, it touched $5.80, the lowest since October. This price has dropped for four straight sessions as overseas buyers shifted to the cheaper supplies around the world.

Meanwhile, soybeans have seen an impressive increase. Delivery of soybeans has rose 0.2 percent to $11.28 a bushel, bouncing back from a 13-month low of $11.0275 in November.

Corn is still the biggest U.S. crop, which is valued at $66.7 billion in 2010 and soybeans is a distant second at $38.9 billion.  

In the Land of Camels, Palm Trees and Babagonush

Fornazor’s Specialty Food Team participated in a Focused Trade Mission to Dubai, UAE and Doha, Qatar. The mission offered a focused dialogue with pre-selected appointments in the commercial bakery sector. Susan Rosenthal Jay and Anthony Micci met with more than a dozen owners and general managers of leading commercial bakeries and ingredient distributors. Who knew that pizza was a staple in Doha, right along with hummus and tabouli salad? There were also receptions hosted in each city by the country’s Ambassador…a very enjoyable way to network!

Fornazor’s Table Top presentation featured many “better for you” and Halal food items. With the high rate of diabetes in the Middle East, there is interest in healthier foods including sugar free, low fat and low salt selections.

The week offered a well organized, and busy, program. Meetings (ask us about spending 45 minutes trying to find an unmarked address in the middle of nowhere), hypermarket visits and enjoying local food all added up to a week well spent.