Global Soybean Consumption Drop in 2012-2013 as Prices Harness Demand

Global soybean consumption will drop about 3 million metric tons in 2012-2013 as record prices harness demand for the oil made from the oilseed for food and biofuel. Import demand will shift to more attractively priced palm oil next year. This will result in seizable increase in exports from Indonesia and Malaysia, reducing their stockpiles.

The rally in soybean meal prices have cooled demand among livestock producers and poultry meat production is already declining. Soybeans rose to a record $17.89 a bushel also on Sept. 4.

Higher prices of oils have affected consumption in the food sector but a larger impact is stemming from a slowdown in biodiesel sector. The growth rates in usage of oils and fats in biodiesel consumption are going to slowdown further in 2013.