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Soybean Production Drop Could Lead to Shortage

04 February 2014

AUSTRALIA - A big drop in soybean plantings in Australia could lead to a shortage of the oilseed on the domestic market next year.

Nationally, the industry is expected to produce just over 60,000 tonnes this season because of a decline in water availability, reports ABC Rural.

Southern NSW soybean marketer Tom Graham says a jump in local and export demand will make supplies tight.

"With a soybean food grade demand of approximately 30,000 tonnes, plus a local feed demand of something like 60,000 tonnes, you don't have to be a mathematician to work out that supply is not going to meet demand."

Mr Graham says it means prices for farmers have been extremely strong.

"Baiada has set the bottom line for A$600 a tonne for feed grade, so that means food grade soybeans will definitely be higher.

"Traditionally, food grade bean have been A$50 to A$60 a tonne higher than feed grade.

"If there's any big buyers of soybeans who export, that will just exacerbate the situation, which means there will be... upward pressure on soybean prices."

TheCropSite News Desk

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