03 October, 2019
RALEIGH, North Carolina, October 3, 2019 - The current global supply for soybean is 356 MMT and is growing at a CAGR of 3.1 percent, while the demand for soybean is growing at a CAGR of 3.4 percent, according to Beroe Inc, a procurement intelligence firm. An increase in income levels and consolidated supply are expected to support 20–30 percent growth in the soybean and its derivatives trade in the next 10 years.
The major soybean-producing regions are the US, Brazil, and Argentina, which account for 82 percent of the global soybean production. Top soybean consumers are China for 30 percent, the US for 18 percent, Argentina for 14 percent and Brazil for 13 percent. Brazil and the US are the largest soybean exporting countries, responsible for almost 85 percent of global exports, while China is the largest importer of soybean. However, an increase in domestic soybean production is expected to reduce the Chinese import demand in international markets in the upcoming years.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The main end-user segments driving the demand for soybean are soy meal and soy oil, obtained by crushing soybean, followed by uses of soybean for food and animal feed. Demand from the crushing industry and growing mandates for using bio-fuel are further driving the growth of the soybean market. A decrease in Chinese imports and impending La Nina weather conditions are expected to pose a challenge to the global soybean market.
Soybean traders and farmers are the major suppliers with the key trading houses buying soybean directly from aggregators and their farmers’ network. After nearly a decade of development, new soybeans have been adapted with the high-yielding germplasm providing growers with outstanding performance in their efforts to produce the best crop possible. In addition, the new soybeans tolerate both glyphosate and dicamba herbicides. New engineering systems enable soybean breeders to better analyze soybean genetics, helping create better high-yielding soybean.
The research methodology adopted for the report included:
Soybean prices and contract structures are majorly fixed by the suppliers using CBOT futures. The basis and freight costs are added to the CBOT prices based on the destination. Usually, the basis is calculated as the difference between cash and futures prices. The planting and harvesting of soybean influences the price trend cycles as the profit margins depend on the time of buying and selling, which is driven by the supply scenario of the given crop-year.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
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