Negotiations in world corn and soybean markets have increased dramatically, according to the investment fund Teucrium Investment Advisors.
Soybeans are used to extract oil and for consumption as a seed legume in the human diet.
Because it is considered a “complete protein” due to its amino acid content, soybean meal is an important component of formulated poultry and fish meals.
World corn and soybean markets
The price of corn is determined by the Chicago Board of Trade. This price varies constantly due to several factors. These factors include farmers’ planting decisions, weather conditions, and government policies, both domestic and foreign. For example, policies related to ethanol production can affect this price. In addition, the demand for livestock feed, the availability of global grain supplies, and international trade agreements also have an influence.
On the other hand, the United States Department of Agriculture (USDA) released its global agricultural supply and demand estimates on September 12, 2024.
According to the report, world soybean production for the 2024/2025 season is expected to reach 429.20 million tons. This represents an increase of 8.7% compared to the previous season, 2023/2024.
Teucrium Investment Advisors believes that volatility, trading volumes and prices in the global corn and soybean markets have increased dramatically and are expected to continue indefinitely at elevated levels.
If global soybean supply does not match demand, this can directly affect the price of soybeans. Global soybean consumption varies each year due to multiple factors. These include economic conditions, global health concerns and international trade policies. These elements are critical to understanding how the price of soybeans adjusts in the global market.
World production
The USDA has estimated that, for the 2023-24 crop year, the United States will produce approximately 113 million metric tons of soybeans, representing about 29% of total world production. As for Brazil, its production is expected to be 155 million metric tons. On the other hand, Argentina is projecting a production of around 50 million metric tons for the same period.
According to the USDA report released on March 8, 2024, world soybean consumption is estimated to be 382 million metric tons. This figure would be slightly lower than world production, which is expected to reach 397 million metric tons.