Broilers

News 2633 views 3 comments

Soymeal for poultry feed the new gold

With a South American drought dampening the harvest expectations, soybeans and soymeal, and consequently chicken feed, have become the target of speculation on par to that of crude oil or gold, the Wall Street Journal reports.

The intensity of the market has already driven soymeal futures and options volume up by 25%: the total futures market is now worth US$10 billion.

Argentina's grain exchange cut its soybean production forecast by 3.1% to 43.1 tonnes. Argentina is the third largest producer of soybean after Brazil and the USA.

But with South American supplies expected to fall, the consumption of soybean is expected to rise; the USDA has forecasted that China’s animals will consume 46.5 million tonnes of soymeal (a 245 increase from previous years) this year, and that US livestock farmers will use more soymeal than in previous years.

Some forecasters have predicted US soymeal consumption will climb to 30.6 million tonnes, representing a 1.3% increase.  

The putative driver behind the demand is China’s growing middle class and the fact that soymeal has as yet no convenient substitute.

The increasing volatility of soymeal prices are making it difficult for chicken farmers to judge the best moment to buy grains for feed. 

Source: Wall Street Journal

Editor WorldPoultry

3 comments

  • no-profile-image

    Mike Sunderland

    The total reliance upon soy as a source of nutrition which is also a source of human nutrition requires further examination Soy has excellent nutritional properties but there are dangers for gut health that are well documented. This year expect U.S farmers to plant more soy but the change from La Nina to a El Nino this year will have to be watched too.

  • no-profile-image

    Akin Sokehinsi

    The scenario is though in Nigeria. High cost of feed raw materials and low selling price of egg. Poultry farmers find it challenging to break even.

  • no-profile-image

    Dr. Krishna Raj Pandey

    The world wide increase in soya cost has also affected the Nepalese poultry industry due to the frequent increase in feed cost without increase in selling price of eggs and meat. This is the challenging situation to the poultry farmers which may bring a screening among the poultry raisers.

Or register to be able to comment.