Soy Food Products And The Market
The fact that soy foods have immense nutritional value and are very versatile, makes the market for soybeans and other soybean products high. Soybean commodity prices have always had a quite reasonable position in the market statistics. It continues to do so even now.
Customers are very bent towards proper nutrition through a well regulated and health conscious diet. Research shows that in most cases their primary choice happens to be soy food for this purpose. Soybean commodity prices have been on stable high grounds owing to this increased demand for them.
The fact that soybeans are used for a vast and varied amount of purposes, from poultry feedstock to cooking oil, also increases its demands and influences the soybean commodity prices. Soybean extracts are available for purchase in the market, in various forms. For example, customers opt to buy soybeans in their entirety, soybean oil or even soybean meal for agricultural feedstock.
The high demand from Chinese importers have pushed the soybean commodity prices to the highest in two years. It has been predicted that the soybean commodity prices will be on a steady high with a commendable CAGR. The global market for it will keep growing within the forecasted period of 2020 to 2030.
Soy Food Products - A Consumption Percentage
Let’s take a look at the cause of the increasing demand for soybean and the increase in the soybean commodity prices. Recently conducted surveys reveal that:
- 40% of consumers who are below the age of 35 years add soy to their meals at least once a week.
- Customers who are 55 years of age or older prefer to consume twice the amount of soy in their meals.
- It has also been observed that a considerable 80% of the buyers have been bent on trying the currently prevalent soy food products or beverages.
Now the question arises, “Why the sudden shift towards soy products that’s leading to an increase in soybean commodity prices?” The basic reason behind this is, that soybeans are extremely healthy for the body. Soybeans are replenished in protein as well as essential amino acids.
It doesn’t stop here. Soybean commodity prices are also influenced by the fact that soybeans are a natural source of polyphenols. They are also rich in vitamins and minerals.
The health benefits of soy products are also a major factor when it comes to determining Soybean Commodity prices.
Let's Look Into The Potential of Soybeans and Other Soy Food Products:
Research shows that soy food proteins are much more effective in lowering LDL or bad cholesterol than animal proteins. Not only that, but they also increase good cholesterol.
Soy food products ensure a diet rich in legumes. This helps lower the risk of various heart diseases.
Soybean commodities also turn out to be helpful when it comes to controlling and regulating blood pressure levels. Dishes prepared with soy food products are generally rich in arginine which helps facilitate this.
There have also been cases of improved fertility among women from consuming soy products.
Soybean is an emerging commodity. Various soybean products such as soybean oil and soybean meal are traded in the commodity market. Though there are variations in the costs of all the traded commodities. As the uses of both commodities are different from each other. This is the basic reason for the high variations in the prices.
1. Production in The US
Among the other countries, the US is the core and largest exporter and the producer of soybeans. As per some of the reports, in the year 2017-2018, the US exported 4.6 billion bushels of soybeans.
This largely affects the supply and prices too. It is because the US is the largest producer and exporter of soybeans, but the country is also prone to many hurricanes and other natural calamities. These all things largely affect the production.
2. US Dollar
When the US dollar is at its strongest position, commodity prices increase. This is because the US is the largest producer of soybeans. Thus all its prices can fluctuate within a second, with a change in the price or the position of the US dollars in the international market.
3. Demand in Soybean Commodity
In recent years, the demand for soybeans and its related commodities has increased a lot. Moreover commodities that are related to soybeans are highly in demand because of their multi-purpose and multi-functional nature. This increasing demand also affects the commodity prices. In case the supply remains constant or the same as it is today, in future the prices will increase a lot.
As the US is the largest producer and exporter of soybeans in the world, the US government offers ethanol subsidies to the farmers out there. This in turn encourages the farmers to produce more.
As the equilibrium between demand and supply is never met, this in turn will hike up the prices of the soybean and its related products.
5. Substitutes in Soybean Commodity
Soybean is not traded alone. It has other substitutes too such as cottonseed oil and rapeseed oil. The price of the alternatives or the substitute oils also affect the market price of the soybean oil. Thus, substitutes have a direct impact on the prices of the other products. Therefore, coping up with the high level competition that too in a global market is not an easy task.
All these factors combined have led to the improvement of soy products as a commodity in the market. It left a huge impact on the soybean commodity prices. For more relevant information, you can contact PL Global Impex Pte Ltd.