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Low interest rates and government stimulus drove the grain markets to new heights in the United States in 2021. Otherwise known as the “Covid commodity boom,” record grain prices were a boon for the American farm belt. While 2024 will likely shape up to be a bumper crop year with corn especially, not all is well in the US farm belt.

Corn and soybean prices have fallen since 2021 and 2022, while the costs of farm essentials remain stubbornly high. Combine the two, and farmer operating margins are being eaten away at an uncomfortable rate. Many are now delaying capital investments, using less fertilizer or fungicide, and understandably focused on the month-to-month as opposed to enhancing productivity and profits over the long term.

Another factor contributing to lower prices is robust corn production in Brazil. The South American giant expects to harvest 4.6 billion bushels this year – a drop of 12% from last year but still the second-best in the country’s history. Brazil exported more corn than the US last year for the first time, and during the previous 20 years, Brazilian corn production has increased by over 1,000%, with soybean production rising by 400%.

The US always maintained a “reliability advantage” regarding Brazil. Transportation in Brazil is slow and underdeveloped compared to more mature markets. However, Chinese investment is shifting this, having invested billions in South America to boost output and competitiveness.

The USDA expects net farm incomes to decrease by a quarter in 2024. Land rental prices continue to climb during a year when rainfall has been ample, leaving the drought-plagued year of 2021 memory-holed.

As most farmers would attest to, everything could change tomorrow. Weather is always unpredictable, as are geopolitical events with major partners such as China. The White House is also in play, so any future policy decisions limiting supply and enhancing domestic competitiveness could result in a leap in grain prices. Meanwhile, crops across South Dakota, Iowa, Nebraska, Minnesota, Illinois, Indiana, and Ohio are at the healthiest in years.

Soybean oilcake is one of the most important commodities in the global agricultural trade. With its high protein content, it is a vital ingredient in animal feed, making it an essential component in the livestock industry. In this article, we will explore the world’s best import markets for soybean oilcake, backed by key statistics and data from the IndexBox market intelligence platform.

1. Indonesia: Leading the Way

The leading country in terms of import value of soybean oilcake is Indonesia, with a staggering 3.2 billion USD in 2022. Indonesia’s demand for soybean oilcake is driven by its booming livestock industry, as the country ranks among the largest consumers of meat globally. As the population continues to grow and income levels rise, the demand for animal protein has also increased significantly, resulting in a higher need for soybean oilcake as animal feed.

2. Vietnam: A Strong Contender

Following closely is Vietnam, with an import value of 2.8 billion USD in 2022. Vietnam has witnessed a substantial growth in its livestock sector as well, with a rising demand for pork, poultry, and aquaculture products. To meet this demand, the country heavily relies on imported soybean oilcake as a protein source for animal feed.

3. Philippines: A Growing Market

The Philippines holds the third position on the list with an import value of 1.9 billion USD in 2022. The country’s livestock industry has experienced robust growth, driven by its growing population and increasing per capita meat consumption. With limited domestic production of soybean oilcake, the Philippines heavily relies on imports to meet its demand. 4. Thailand: Capturing the Market Thailand ranks fourth on the list, with an import value of 1.6 billion USD in 2022. The country has a well-established animal feed industry, which relies heavily on soybean oilcake. Thailand’s livestock sector is expanding rapidly, particularly in the poultry and swine farming segments, driving the demand for imported soybean oilcake.

5. France: A European Leader

As the only European country in the top five, France boasts an import value of 1.6 billion USD in 2022. The country’s vibrant livestock industry, particularly its poultry sector, drives the demand for soybean oilcake. With a high concentration of livestock farms and strict regulations on animal feed quality, France heavily relies on soybean oilcake imports to meet its production needs.

6. Netherlands, Spain, and Poland: European Demand

The Netherlands, Spain, and Poland share the sixth position on the list, each with an import value of 1.5 billion USD in 2022. These European countries have thriving livestock industries, with a significant reliance on soybean oilcake imports to fulfill their animal feed requirements. The Netherlands, for instance, is Europe’s leading meat exporter, making it a critical player in the soybean oilcake import market.

7. Germany: Maintaining a Strong Position

Germany ranks ninth on the list, with an import value of 1.3 billion USD in 2022. The country has a well-established livestock industry, with a focus on pork and poultry production. With rising meat consumption and strict regulations on animal feed quality, Germany relies on soybean oilcake imports as a crucial component of its animal feed formulation.

8. United Kingdom: Nearing the Top 10

The United Kingdom rounds up the top ten import markets for soybean oilcake, with an import value of 1.1 billion USD in 2022. Despite the challenges posed by Brexit and changes in trade dynamics, the UK’s livestock industry remains substantial, and soybean oilcake imports continue to play a crucial role in meeting the country’s animal feed requirements.

These top ten import markets for soybean oilcake demonstrate the global demand for this essential commodity. As countries strive to meet the increasing protein requirements of their growing populations and expanding livestock industries, imports of soybean oilcake remain crucial. IndexBox’s market intelligence platform provides valuable data and insights into these markets, helping businesses make informed decisions and stay ahead in this competitive landscape.

Source: IndexBox Market Intelligence Platform

US Corn is Reeling from Falling Grain Prices and Competition from Abroad

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