Soy moves

- Last updated on GMT

Related tags: Bovine spongiform encephalopathy, International trade, Soybean

The Russian government recently lifted import duties on soybeans,
corn and fishmeal for nine months starting 25 January, reports the
American Soybean Association, opening the way for soy movements in
the East.

According to the US Department of Agriculture, as feedstuff demand grows along with the livestock sector, this action will open up export opportunities for US agricultural products.

Giving a lift to imports of feedstuffs crucial for the development of Russia's poultry and livestock industries, the government of Russian Federation is down to lift the 5 per cent import duty on soybeans, corn and fishmeal beginning on 26 January this year.

Although not technically part of the livestock industry, oilseed crushers also favoured the resolution, reports ASA, as it will reduce the cost of raw materials for their soybean processing operations.

The approval of this resolution is timely for the livestock sector, as the cost of imported soybean meal rose on 1 January, due to the expiration of temporary (nine-month) duty free imports of this product.

Elsewhere in the world of soy, the US media reported on rumours that the Food and Drug Administration (FDA) might opt to ban the use of meat and bone meal (MBM) in all animal feed.

The action would follow the discovery last month that a US dairy Holstein cow was infected with bovine spongiform encephalopathy (BSE) and would bring some strong benefits to the US soybean industry.

'If meat and bone meal is banned, there will likely be a large increase in the demand for soybean meal a replacement,'​ writes the ASA.

'Since 2000, the US has produced an average of about 2.4 million tonnes of MBM, with about a half million tons exported. Replacing all of that MBM would take more vegetable meal, since MBM protein levels are higher. Some estimates have put the increase in soymeal usage in the area of 3.2 million tonnes.'

The world price for soy has been under considerable pressure in recent months as droughts in the US, a leading producer of the crop, sent the price soaring.

Related topics: Market Trends

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