Shock for U.S. soy meal industry Smithfield Foods imported from Argentina.
Despite a record harvest in the United States shot up soy meal courses has the U.S. finishing economy considerable affected drawn. The high soy prices are basically caused by extreme low surplus stocks of old crop and a delay of the new crop. The exports of the new goods down unbroken continued the missisippi.
For finishing operations in the East of the country is only the expensive land cargo by road and rail to consider. But the US transport capacities are limited this year. The result: the prices in the consumption site increase disproportionately almost available goods plus high freight costs.
The world's largest pig farmers Smithfield Foods with its headquarters on the East Coast of the United States has ordered simply several 100,000 tons of soybean meal in Argentina. Cost prices at high dollar rates plus low-cost freight were cheaper than to bring the same goods from the regions on land on the US East Coast.
The order of 200,000 tonnes can be given a weekly U.S. demand of 525,000 tonnes initially quite listen, even if they may seem at first not great. However, there are repetitions of this kind cannot be ruled out.
It is assumed that the nationwide supply of soybean meal in the United States can be done in the next few weeks and months. The inevitable subsequent offer amounts in the further course of the year can be disturbed but sensitive. The recovery of the US's bumper crop would have to be achieved through additional exports.
On the stock market , the message has led to a sudden stop of the upward movement of the soy meal prices. The imports but reduces the period of high prices.
Soy shipments from South America existed already during the summer months, the supply bottlenecks between old and new crop emerged ever more clearly. At the time, prices could be influenced only limited because the merchandise remained scarce and expensive. The upcoming situation but rather characterised by an above-average supply situation.
