Higher soybean exports predicted for 2021
The latest world supply and demand report is counting on higher soybean exports next year.
USDA economists forecast total soybean exports to hit 2.3 billion bushels next year, significantly higher than this year’s estimate of 1.6 billion.
Although, the final tally will depend on global recovery. Todd Hubbs, an ag economist with the University of Illinois, is optimistic.
“To me it feels like for both corn and soybeans, there’s an assumption we’re going to have a pretty strong economic recover, both domestically and around the world, and while we have seen some of the world start to recover, we are still going through some stuff here in the United States and in other places,” he said. “This thing is far from over and when I look at the numbers, it is some pretty strong consumption numbers for both corn and beans.”
China is also recovering from coronavirus and an African Swine Fever outbreak, driving the Asian nation’s pork industry and feed demand.
“In China they have had flooding and their economy is dependent upon exports. If the world is having issues, their economy is going to have issues as well. We have seen them begin to rebuild their hog herd, but they are not back to where they were and that impacts soybean exports,” Hubbs said.
South American competition will also be another factor in sales.