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.

Fornazor International traders are in St. Louis for the Soy & Grain Trade Summit!

     Traders from Fornazor International are in St. Louis today exhibiting at the Soy & Grain Trade Summit, which is being held at the Hyatt Regency St. Louis at the Arch and runs from October 31st through November 3rd. The focus of this year's Soy & Grain Summit is to offer strategies for sustainable growth in agricultural production, processing, and transportation worldwide. The Summit features exhibitions from industry professionals including grain and oilseed producers, processors, and exporters such as Fornazor International.  Manufacturers of food, animal feed, and bio-fuels, as well as equipment and service providers, trade groups, government agencies and academics will also be present.
     Fornazor International is an exporter of many high quality animal feeds including poultry meal, corn gluten meal, and soybean meal. For more information on our products, please stop by booth #410!

Soybeans, Soy Hulls and Soy Hull Pellets: A Beneficial Rudiment Animal Feed Ingredient

With an increasing demand for organic and healthy ingredients, soybeans have risen into the spotlight over the last few years; however, soybeans and their byproducts have been known in the animal feed realm for centuries.

The soybean is a species of legume native to East Africa and has multiple uses including:

• animal feed
• soy milk
• tofu
• tofu skin
• soy sauce and more

While soybeans are the largest source of edible oils in the United States, producing more stable oils which requires less hydrogenation and provides a trans-fat-free alternative for applications such as frying oil, their popularity is not just because of their low trans-fat content and production abilities.

Soybeans are known to contain phytic acid, which is not digestible in humans and non-ruminant animals. Therefore, they require additional steps and procedures before being served to them, but soybeans are completely digestible to ruminant animals.

Ruminant animals are animals that have multiple stomachs to aid in proper digestion which consists of swallowing food, regurgitating, chewing and swallowing food again. This process is called ruminating.
Ruminant animals include:

• Cattle
• Goats
• Sheep
• Giraffes
• Bison
• Moose
• Elk
• Yaks
• Water buffalo
• Deer
• Camels
• Alpacas
• Llamas
• Wildebeest
• Antelope
• Pronghorn
• Nilgai

Since these ruminant animal digestive systems include enzymes necessary to break down phytic acid, and additional steps are not required before consumption, soybeans are the ideal feed ingredient for ruminant animals.

Soy hulls are a byproduct of soybeans that have been processed for soybean oil and soybean meal. When soybeans are processed for soybean oil and soybean meal, they are crushed, cracked or rolled to break down the whole bean into smaller pieces. The hulls of the soybean are separated and removed by airstreams or fans and carried away. These soy hulls are collected and toasted to destroy their ability produce ammonia, which neutralizes gastric acid, and crushed or ground to particle size requirements.

Soy hulls are high in fiber, low in protein, highly degradable and extremely palatable. Soy hulls are typically used to increase bulk in fine texture rations. Though soy hulls are a viable source of digestible fiber, they are not a viable source of effective fiber and should only be incorporated in roughly 20% of dry matter rations for animals such as dairy cattle. Soy hull pellets are created once soy hulls are toasted, ground, and mixed with additional ingredients. Soy hulls and soy hull pellets are an excellent source of fiber and are used in dairy rations and other feed products.

For more information on soybeans, soy hulls and soy hull pellets, contact us. Fornazor is also a leading provider of feed ingredients and distillers grains nationally and internationally.