USSEC Emphasizes Building Demand as Record Soybean Crops are Predicted
- General News
Last week’s 2nd Annual U.S. Soy Global Trade Exchange came at the right time for U.S. growers who are celebrating record volume predictions but are concerned with tumbling soybean prices.
The U.S. Department of Agriculture (USDA) projects the nation’s farmers will harvest nearly 4 billion bushels of soybeans, blowing away the previous record, but prices have fallen as a result. In order to stabilize and reverse the free fall, industry officials say increasing exports is a must.
According to USSEC CEO Jim Sutter, “It’s great timing for [the U.S. Soy Global Trade Exchange] as we have [hundreds of] people that represent a lot of global soy demand. It’s a great opportunity to show that the U.S. is a valuable, reliable supplier of soybeans.”
USSEC builds international demand for U.S. soy by meeting the demands of its customers and stakeholders. One of the ways that it meets these needs is through trade events, such as the U.S. Soy Global Trade Exchange.
“This event is a global showcase for the U.S. soybean industry. It shows customers from around the world that the U.S. values relationships and is committed to being a supplier of first choice,” said outgoing USSEC Vice Chairman and Iowa Soybean Association (ISA) CEO Kirk Leeds.
Renault Quach, vice-general manager of Dongling Grain and Oil Co., signed agreements to buy 400,000 metric tons (MT) of soybeans. Soybeans’ drop in price, along with consistent good quality, were contributing factors, he said. “A lot of buyers already started to make purchases before the price dropped below $10.50 per bushel. The lower prices will encourage even more purchases from the U.S.,” Mr. Quach said. He continued, “The conference gives us the opportunity to meet a lot of people, learn about logistics, trading services and share market information.”
Tom Oswald, ISA president, said that although price is often the driving factor behind sales, customers consider many factors when choosing when and where to buy, such as timely shipping, food security and grain quality, adding that the [U.S. Soy Global Trade Exchange] is an excellent place to pick up nuisances of the market. “The relationships and contacts made here all help chip away at the large production number,” Mr. Oswald said.