USSEC’s Global Grain, Soy and Transportation Outlook in Philippines Attracts 100 Participants
- General News
USSEC Southeast Asia successfully hosted the Global Grain, Soy and Transportation Outlook on March 10 in Manila, Philippines. Held at the Marco Polo Ortigas, almost 100 commercial decision makers from grain and oilseed trade, livestock production integrators, compound feed producers, farmers associations and agricultural officials attended the event, which was an extension of the equally successful 10th Asia Grain Transportation Conference held earlier in Phuket, Thailand which saw 140 participants from Southeast Asia region.
Two morning workshops, jointly conducted by USSEC consultants Jay O’Neil of Kansas State University’s International Grain Program and Paul Smolen of Agri Networks Management, covered the main price components (basis and futures) which make up commodity price; price risks management using futures and options; and factors to look out for which impact global trade and prices.
In his opening address, USSEC CEO Jim Sutter congratulated the industry stakeholders for their collective efforts in successfully and effectively managing the issues posed by the Philippine Supreme Court’s recent ruling on biotech eggplants which posed a threat to crippling the importation of U.S. agricultural products.
Jon Schaeffer, director of the South Dakota Soybean Association, spoke about the U.S. soybean crop outlook and practices on his farm including a conservation reserve program, no-till practices, re-useable fuel, cover crops and technology; his efforts and contribution to minimizing his farm’s carbon footprint; and doing his part for sustainability. Mr. Sutter affirmed the U.S. Soy family’s commitment to continue using practices that are environmentally, socially and economically sustainable and explained the audit and certification process for both the production and export of sustainable soy.
Speakers Emily French, managing director of ConsiliAgra; Joseph Sowers, assistant regional vice president, South Asia, U.S. Wheat Associates; and Nicholas Hoyt, vice president of Informa Economics presented their outlook for the global oilseeds and grain crops and trade.
Mr. Smolen presented the soybean value package which buyers of U.S. Soy can expect to receive when they make their purchase - intrinsic values, extrinsic values, skills and learning and commercial relationships, while Mr. O’Neil summarized the freight outlook presented at the 10th Asia Grain Transportation Conference in Phuket, Thailand.
The Philippines is the biggest customer of U.S. soybean meal in Southeast Asia, the world’s 6th largest pork producer, and ranks 20th in global feed production. The total imports for U.S. soybeans into Philippines in MY 2015 are 115 thousand metric tons (TMT) and 1.42 million metric tons (MMT) for soybean meal, an 89 percent and 65 percent market share respectively.
Based on written feedback received, almost half a million metric tons of U.S. soybean meal were indicated to be transacted or negotiated by the participants at the conference for 2016 so far.