U.S. soybean meal should remain competitive in the world market despite increased market pressures from biodiesel and ethanol, according to a report released by the United Soybean Board (USB).
The study provides an in-depth examination of how increased biodiesel and ethanol production could affect the supply and demand of soybean meal. "It is important for us, as farmers, to find out if and how the additional soybean meal produced because of the increased biodiesel production can be absorbed into the market," said Mark Seib, Posey County farmer and president of the Indiana Soybean Alliance. "A significant portion of the value of our soybeans depends on a strong soybean meal market. This study indicates that despite some challenges, U.S. soybean meal should remain competitive in the world marketplace."
Increased domestic soybean crush to fill the demand for soybean oil used in biodiesel production will also result in additional soybean meal supplies, leaving soybean farmers and the rest of the soybean industry to answer the question, "What will happen to all the additional soybean meal?"
The study entitled "Soybean Meal Evaluation to 2020," found the future of soybean meal is influenced by many factors, such as petroleum oil prices, export markets, the global animal agriculture scenario, competition from alternative feed ingredients and improved compositional traits for soybeans, so there is no one simple answer to supply-and-demand challenges.
To access the 278-page study (8.5 MB file), visit www.unitedsoybean.org/Library/Studies.aspx.