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.  

Fornazor back home from Soyatech's Soy & Grain Trade Summit

    
      From October 31, 2011 – November 2, 2011 members of Fornazor International, Inc. attended the 4^th annual Soyatech Soy and Grain Trade Summit, which was held in St. Louis, MO at the St. Louis Grand Hyatt.  This annual event brings together some of the top names in the industry for informative and educational tours, discussions, and networking opportunities.  The show also exhibits cutting edge technologies in the world of Soy.  Previous conferences have been held in Chicago, New Orleans, and Minneapolis which are also key hubs in the trade.  This year’s show was no different as hundreds of buyers, sellers, and producers in the soy industry converged to discuss the latest trends, needs, and applications for soy made products.  As well as domestic buyers and producers, we were joined by top companies from all around the world including those from Europe, Asia, Australia, South America, and Africa.  The show was very successful for Fornazor International because it allowed us to meet face to face with both key buyers and key suppliers of soy related products.  The Soy and Grain Trade Summit is one of the largest trade shows in the US that focuses its attention almost exclusively on the soy trade.  New technologies from seed manufacturers were unveiled which should help soybeans and soy by products to achieve better yields and higher resistance to disease and insects in the future.

     One of the biggest talking points that reverberated throughout the show this year was “how do we maximize yields throughout the world” as major growing areas seem to have already reached their peak outputs.  With the world population now surpassing the 7,000,000,000 mark, we fully expect to see a strain to feed all these individuals and livestock.  Major improvements have to be made to production in areas of Africa, South America, and even in parts of bread basket of Europe.

     US soy production is still at very high levels.  As other countries continue to develop and to demand higher quality, consistently supplied animal feed, they will continue to look toward the US as the most reliable supply source.  Next year’s conference will be held in New Orleans and we are certainly looking forward to participating in that show as well.

How Now, Brown Cow?

Fornazor just returned from a very successful show at the World Dairy Expo (WDE) in Wisconsin. Our USA produced alfalfa bales and pellets, corn gluten meal and soybean meal, cottonseed, DDGS, Amino Plus and our menu of other agricultural commodities generated lots of interest.  

The show was not only attended by Americans - Participants from Indonesia, Korea, Japan, Taiwan, UAE, Mexico, Venezuela and Canada all stopped by our booth to learn more about our range of dairy feed ingredients.

Not only did we enjoy meeting these visitors….we also enjoyed “meeting” the show cows. These weren’t ordinary Bessies or Maggies or Annabells. You won’t find better looking cows anywhere. It was obvious that hundreds of hours of washing, blowing and brushing made these beauties even more beautiful.

Click below to see our video; you'll see what we mean.