Buenos Aires / New York: A soybean producer in Argentina, Paraguay and Uruguay, Los Grobo SA, forecasts prices of the oilseed will climb on rising demand for animal feed in Asia.
“We are going to have two or three years of volatility,” director Gustavo Grobocopatel said on Monday in Buenos Aires. “Demand from China is going to keep rising,” he added.
Purchases of soybeans in China are growing as residents of the world’s most populous country eat more meat and consume more vegetable oil as incomes rise and diets change. Argentine farmers plan to plant more acres with the oilseed this year to benefit from higher prices.
Green futures: Indian farmers spray insecticides on their soybean crop. Demand for the oilseed is climbing in Africa and India.
Demand for soybeans is also climbing in Africa and India, Grobocopatel said.
Soybean futures have gained 26% this year after the US cut acreage by 15% to the lowest in 12 years. soybean futures for November delivery rose 10 cents (Rs4.07), or 1.1%, to $8.8175 a bushel on the Chicago Board of Trade, the highest close since 19 July.
The higher prices “could last longer” than the rally in 2004 because demand is stronger now, Grobocopatel said.
Argentina is the world’s third largest soybean exporter behind the US and Brazil. The country is also the world’s largest exporter of soyoil.
Argentina’s wheat output may fall this year because of a shortage of nitrogen used as a fertilizer in the South American nation, Grobocopatel said. The country was the world’s fourth largest wheat exporter last year.