The United Soybean Board (USB) and American Soybean Association (ASA) have formulated a new international marketing strategy. Under the plan, which was approved at the recent U.S. Soy Industry Strategic Planning Conference in Chicago, international marketing efforts will be focused on a product-based strategy. Previous efforts have been concentrated on marketing to specific countries or geographical regions.

The new product-based marketing strategy will be broken down into three categories: commodity soybeans, value-enhanced soybeans and global issues management. The commodity soy marketing category will consist of overseas customers who are interested in buying bulk amounts of U.S. soybeans for use in such areas as aquaculture or livestock and poultry production. The value-enhanced category will focus marketing efforts on customers interested in U.S. soybeans that have been produced to have superior traits.

The global issues marketing category will focus on gaining market access for products that are not yet accepted in certain markets. This will be accomplished through continuing to develop relationships with foreign countries to highlight the benefits of buying U.S. soybeans. Global issues such as sustainability, biotechnology acceptance and transportation issues will also be addressed through this new marketing category.

In related news, representatives of the American Soybean Association and associations of Brazilian and Argentine soy farmers launched what is being called the International Soybean Growers Association. The three countries, who together account for 80 percent of the world’s soybean production, will join forces in marketing efforts to open international markets for soy products, according to Ricardo Arioli, president of the Mato Grosso Soy Growers Association, Brazil’s largest grouping of soy farmers. According to Arioli, the new association’s first joint endeavor will be a combined strategy to reinforce the image of soy products in developing markets, concentrating on India.

Several soybean cargoes from the United States and Argentina reportedly have met with increased checks at Chinese ports amid tighter inspections. Some exporters feel the tighter soy inspections are “political” and in reaction to stronger trade restrictions in Argentina on some Chinese products and the fact the U.S. recently has recalled multiple toys produced in China.Last week, the quarantine authorities said it would strengthen its supervision over soybean imports to ensure the quality and safety.

Argentina’s lead trade official said he does not believe there will be any lasting backlash on soy shipments from his country. However, following Argentina’s restrictions announcement, Beijing expressed concern and said it would act accordingly in defense of its interests. Argentina imposed higher tariff and customs duties on a list of goods that are having a negative impact on several local industries including tires, foot wear, bicycles, auto parts, leather goods, toys, textiles, electronics, tools, etc. most of which China is a world leading producer. All last week, the Argentine press has speculated about the possible countermeasures China would or could adopt, more specifically on the soybean shipments.

Industry officials and traders said the quarantine authorities (CIQ) were inspecting soybeans more thoroughly than before, delaying discharges of U.S. and Argentine cargoes, though none was yet rejected. According to Reuters, some buyers had to put the soybeans into a warehouse and wait for an approval before crushing the beans.

In 2007, the U.S. net farm income is forecast by USDA to be $87.1 billion, up $28.1 billion from 2006 and $29.7 billion above its 10-year average of $57.4 billion. This tops the previous record (in 2004) of $85.9 billion for net farm income. Cash expenses will rise 8.5 percent to a record $222.6 billion, and gross cash sales will jump 16 percent to a record $276.4 billion, the USDA said.

The value of all U.S. crop production this year is forecast to rise 14 percent to $136.2 billion from 2006. The average price of soybeans is 36 percent higher. The value of production from cattle, hogs, chickens and eggs will increase 18 percent to a record $140.2 billion, USDA said.

Direct government aid to farmers is forecast to fall 14 percent to $13.6 billion from a revised $15.8 billion last year and down from a record $24.4 billion in 2005. Payments to farmers averaged $16.9 billion over the last 10 years, USDA said. The government in February had forecast aid of $12.4 billion for this year. Net cash farm income, which does not include costs such as depreciation and changes in the value of inventories, will be a record $85.9 billion this year, up from $67.9 billion last year, according to USDA’s forecasts.

U.S. biodiesel production in June was 132,518 tonnes, down from 139,598 in May whereas in June 2006, some 76,706 were produced, U.S. Census’ data showed. This brought cumulative biodiesel production in the first six months of 2007 to 650,232 tonnes, up from 293,321 for the corresponding 2006 period. However, the 2007 figures include all fats and oils consumed for biodiesel production while the data for last year are based on once-refined soyoil only. Thus, these figures are not comparable. Biodiesel production from virgin soyoil in 2006 was 71,777 tonnes.

The soy complex was up on August 30 as speculators continue to be consistent buyers of soybean futures since the financial meltdown of the first half of August. Although last week’s export sales report was disappointing for the soy complex, a surging wheat market lent support as soymeal is becoming increasingly competitive in EU feed rations. An improvement in USDA crop condition ratings last week and Pro Farmer crop tour pod counts suggest that the U.S. soybean yield likely is larger than USDA’s August yield of 41.5 bushels per acre; however, any optimism the market might have about the crop seems to be held in check by excessive rainfall in the northern soybean growing areas and a lack of rainfall in southern areas. September bean futures closed up $4.41, finishing at $319.85; November gained $3.95, closing at $325.18; and January was up $3.67, ending at $330.51. September meal increased $5.51 closing at $264.55; October was $5.07 higher, finishing at $266.87; and December meal gained $4.52 to close at $271.83. September oil closed $1.54 higher to finish at $800.93; October was up $1.76, closing at $806.00; and October gained $1.32, closing at $816.80.

Back to index