Soybean is a plant crop that is used in the food and industrial sectors. The demand for this product is increasing every year.
Between 2019 and 2020, the world’s soybean stocks could increase up to 110 million tonnes, and it is a record for this market. In addition, in the main producing countries according to the results of the previous season, soybean stocks remained. All these factors may influence that the total supply of soybeans in 2019-2020 may reach a record number: 454.3 million tons.
World trade in soybeans
According to USDA, the world soybean trade is expected to grow rapidly. By 2027, the number of imports of this product will be 205 million tons.
Most of the world’s soybeans are processed or crushed every year to produce soybean meal and oil. The rest is used directly for human consumption. The global soybean oil market has grown by about 3% in the last four years.
Soybean oil is the world market leader in oilseeds.
It can be cold-pressed, unrefined, and refined.
The first cold-pressed oil is considered the most useful oil for the body, as it retains most of its useful substances. It has a rich straw-yellow color and a rather peculiar aroma as well as taste.
Untreated soybean oil also retains most of its health benefits. It can be used raw, but you can’t fry on it, because it forms carcinogens.
Refined soybean oil is odorless, but it has a pleasant taste. It is also used raw.
According to forecasts, in 2019-2020, soybean oil production in the European Union will increase by 1% and will reach 3 million tons.
Today, there is a growing demand for soybean
flour, which is used for animal feed purposes. This also contributes to the increase in soybean oil production and the demand for this product. Other benefits that increase consumption are competitive prices, availability, environmental friendliness, and various nutritional benefits. According to index Mundi statistics, the European Union is the fifth-largest soybean oil producer in the world. In Europe, the largest amount of this product is produced by such countries as Ukraine, Serbia, Norway, Bosnia and Herzegovina, Switzerland.
Producers of soybean oil in Europe – Rating
EU countries are in eighth place in soybean oil imports after China, India, Bangladesh, Algeria, Morocco, Peru, and Colombia. In 2019, soybean oil exports to the EU were 350 million tonnes.
Among the leading companies in the soybean oil market are Bunge Limited, The Archer Daniels Midland Company, Cargill, Incorporated, Ag Processing Inc A Cooperative, CHS Inc.
In order to supply soybean oil, a number of requirements must be met:
– Have permission to sell or buy soybean oil.
– Apply for soybean oil and its transportation documents.
– Prepare the premises.
The documents required for soybean oil shipments include invoices, delivery notes, customs declarations, and a bill of lading.
Soybean is one of the most requested crops in crop production. It is a high yielding plant the fruits that bears fruit on almost all types of soil. It is used in the food and feed industry. The demand for this product in the world market remains high. The price of soybean is much higher than some other crops, but it has a more stable price. The demand for both soybean and soybean products (flour, meal, oil) is constantly increasing, which is influenced by the increase in the production of livestock products. Because of these factors, the cultivation of soybean is a highly profitable business. But in this process, there are certain features that must be taken into account.
The profitability of soybeans depends on at least three factors: the place of cultivation, where sufficient heat and moisture must be available, successful weed control and the right choice of soybean variety to be adapted to local conditions. By observing these conditions you will be able to harvest a stable crop every year, even in hot and arid areas.