USSEC Maintains Positive Outlook as Japanese Economy Continues to Struggle
- General News
USSEC continues its positive outlook for soybean meal exports to Japan despite a persistently sluggish economy in that country. As the yen has weakened, prices on imports such as soybeans, wheat and canola have risen, which has in turn increased prices of goods such as flour and oil.
USSEC consultant Katsufumi Maekawa explains the Japanese economic stimulus popularly known as Abenomics (so named for Prime Minister Shinzo Abe):
“Abenomics is a fresh round of government spending and drastic monetary easing designed to end 15 years of inflation. It has already shown some success in the automotive and appliance export industries, but has not yet affected income, so food consumption has not changed, which means that imported meat, fish and vegetables are affected as well as soybean meal imports.”
He goes on to theorize that the Japanese holiday Golden Week, which typically takes place from late April to early May could help domestic meat and egg consumption as consumers celebrate with picnics or barbeques. “If domestic meat and egg consumption go up, that will be good news for market prices and good news for livestock producers.”