Located in North America, the United States is the leading soybean producer and second biggest soybean exporter in the world. Soybeans comprise approximately 90% of the total oilseed production of the country and bumper production help the United States export bulk volumes of soybean every year.
However, things might change, as the second biggest soybean exporter is likely to witness growing domestic demand of soybeans for feedstocks for renewable fuels. A report from Rabobank, a respected multi-national financial and banking services group has highlighted the same and has based its report on scenarios and models.
The Rabobank Report
The Rabobank report has repeated its earlier projections that the United States share in the global soybean market is set to decline as the country is likely going to witness a spur in domestic soybean demand for feedstocks for renewable fuels.
The report has also mentioned that while the demand remains strong on domestic front, the global market poses various challenges. Volatility in export markets together with high U.S. dollar make it difficult to analyze the demand that the United States would witness in the months to come.
Talking of area under plantation, the report also highlights that combined acres for corn, soybean and wheat will be maxed out under current conditions, which means that it will be difficult to boost production in case new demand emerges or the existing demand grows further. While concluding, the report cautions that its projections are based on trends and depend on market conditions and other factors as well.
Present Situation In The U.S.
The United States is witnessing a rise in demand for feedstocks for renewable diesel and sustainable airplane fuel. Owing to this, there is an ongoing increase in the domestic soybean crushing capacity.
According to the American Soybean Association, about 430,000 to 530,000 bushels of added crush capacity are planned for the 2023-2025 calendar years. The increased soybean crush capacity is eventually going to eat the soybean export market; however, it will give a push to the soymeal exports.
The Bottom Line
The United States is the largest soybean producer and second largest soybean exporter in the world. Soybeans constitute approximately 90% of the total domestic oilseed production and bumper harvest help the United States maintain its rank as a leading soybean exporter. However, this might change as the country is witnessing a growth in domestic demand for feedstocks for renewable diesel and sustainable airplane fuel which is leading to increase in crushing capacity as well. The increase in domestic crushing capacity is eventually likely to eat the soybean export market and the same has been highlighted by Rabobank, a respected multi-national financial and banking services group in its report.
If you are a soybean exporter looking to export bulk soybean or are a soybean importer looking to import bulk soybean, then Tradologie.com is the platform for you. Tradologie has over 600,000 verified buyers and 70,000+ verified suppliers in its network and through the platform you can connect and conduct bulk trade of food and agro-commodities with ease.
To stay updated with the recent happenings of the agro-trade industry, do follow Tradologie across all social media channels.