EDMONTON – Most of Western Canada’s soybeans are destined for American markets.
Sean Rempel of Quarry Grain in Stonewall, Man., said American crushers in North Dakota and Minnesota ensure a steady demand for prairie soybeans.
The United States is the world’s largest soybean producer, growing 91.5 million tonnes of the world’s 253 million tonnes of production.
Canada’s 2009 crop was 3.5 million tonnes.
Thomas Mielke of the German oilseed publication Oil World told FarmTech in Edmonton that provides Canadian soybeans with a valuable nearby market.
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“Soybeans are a very large international market in which your neighbour to the south is a very big player,” he said.
“Canada is a small provider, but it gives you access to your neighbour’s business. Soybeans are relatively stable with a very strong future.”
Despite declining soybean prices over the past two months, Mielke said he sees that tumble stopping in the $8 US per bushel area.
“The demand for vegetable oil is growing. It even is growing when the economy appears to be flat or declining,” he said.
Soybean oil prices will be partly supported by legislated biodiesel production in Europe as well as cooking oil demand in China.
Analysts say Brazil, a large soybean producer, is now harvesting another good crop. It grows 60 to 65 million tonnes annually.
The Brazilian crop is arriving on the tail of a record U.S. crop, but Mielke said prices for soybeans are remaining strong. Some specialty soybeans destined for human food markets are grown under identity preserved contracts, collecting price premiums for growers. They tend to have either yellow or dark hilums, which is the point where the bean and pod meet.
These specialty beans can move into the commercial market if they don’t meet the grade contracted.
“Beans, unlike most of our field crops out here, can have 10 percent splits and still not see any dockage, said Kevin Elmy, who grows soybeans at Saltcoats, Sask.
“Green seeds that are turning yellow inside aren’t green. It’s a forgiving market.”
Provincial pulse specialist Dale Risula said soybeans shouldn’t be thought of a specialty crop when it comes to marketing.
“They are in the top five most grown in the world.”
