Brazil’s Soybean Meal Exports Forecast to Grow

Soybean meal is the most important protein source used to feed farm animals. China imports more than 60 percent of soybeans traded worldwide, crushing them to make cooking oil and protein-rich animal feed ingredient soymeal. China’s demand for soybeans to crush for soybean meal to feed livestock has soared in recent years as the economy has grown and demand for protein, especially pork and poultry, has soared. Protein is paramount for Chinese importers. Brazil’s soybeans have higher protein content. Brazil’s soybean meal exports forecast to grow in 2018.

According to the USDA, total domestic consumption of soybean meal in MY 2018/19 is forecast at 18.5 mmt. For MY 2017/18, domestic consumption is forecast at 18 mmt. Post forecasts consumption to increase mainly due to economic recovery, which is supporting higher domestic consumption of meat. Domestically, Brazil’s feed sector continues to use soybean meal as the second most important ingredient for animal feeding.

The increase in Brazil’s soybean meal exports is completely due to the export opportunities that became available as a result of the drought in Argentina. Exports for the MY 2018/19 are forecast at 15 mmt, mainly to markets in Asia and the European Union.

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