News
USSEC: Soybean trade in sweet spot
The head of the U.S. Soybean Export Council (USSEC) says the COVID-19 pandemic has not greatly affected the world soy market.
Jim Sutter says even though the world economy has struggled, the September supply and demand report estimates world soybean trade for 2021, which started September 1st, at 369 Million metric tons.
“To break that down, you know, that’s easy math. Almost a million metric ton a day. When I put my farmer hat on and look at it from an acreage standpoint that equals the soybean production from over 700-thousand acres every day.”
Sutter, on the recent AgriPulse Ag Outlook Forum, says soybeans are in a sweet spot with world demand up 17 million tons this year outpacing the 10-year trend of 11 million tons.
“At that 10 year trend, the world will need another U.S. crop in 10 years. A whole other U.S. crop in 10 years. And at the higher number of this year, it’s in seven years we’ll need another U.S. crop.”
Sutter says the last few years have been tough for soybean producers but they should not lose sight of the demand picture. While he does not expect China to reach half of its phase-one agreement commitment in the first year, shipments ARE ramping up and sales are very strong. Sutter believes China IS buying to fill demand.
