Market Outlook

See the the latest Soybeans & Oil Crops Outlook report.

Soybean Meal Prices Under Pressure

Despite a strong start to the 2020/21 soybean meal marketing year, meal exports waned over the summer even though prices fell. As U.S. prices continue to decline, the potential for U.S. soybean meal exports capturing market share of world exports for 2021/22 improves. Slow growth in domestic feed demand puts pressure on soybean meal prices. Annual commercial red meat and poultry production forecasts remain relatively unchanged from 2020 to 2021 and dropped slightly for 2021 to 2022. However, with declining availability of alternative protein meal sources (canola and sun meal), increased domestic use of soybean meal is expected. Soybean oil prices are expected to remain relatively high due to strong biofuel production. An expectation of expanded crush to meet burgeoning soybean oil demand looks to place pressure on soybean meal prices during the forthcoming 2021/22 marketing year.