An ag economist says soybean growers need more uses for their commodity.
Jim McCormick with AgMarket.Net says that’s due to decreasing demand for U.S. soybeans, which has been led by China seeking its supply from Brazil.
“Remember, (China) spent a billion dollars plus building a port in Chile,” he said. “The goal of that port is to move beans out of Brazil into Chile and then straight into China. This is just going to encourage more and more and faster investment in roads and rail to get these beans out of South America and into the Chinese’ hands.”
He suggests biofuels as a way to boost demand.
“It’s going to be very crucial in the long run for us to build out our biofuels sector,” he said. “The reality is this, we’re going to continue to lose market share to the Brazilians. We are going to have to find a different use for U.S. beans. The biofuels are the answer, I believe.”
According to the American Soybean Association, without biofuels as an alternative market, surplus soy oil would have a major negative impact on U.S. soybean prices.
Click here for the audio interview.
