In the past decade, the major driver of the soybean market has been exports. Stone X Group Risk Management Consultant John Payne says that has begun to shift to a fuel market. “In the case of markets, like soybeans, we have China representing 40 to 50 percent of our demand, but that’s changing. There are stronger crush margins, especially in the north and with new plants are being added. Renewable diesel is going to be a product. There’s other competition fighting with crushers in the United States.” Payne says the renewable diesel market is now the major driver of the soybean market. “Crush margins are coming in at record levels, even at near record prices. A strong soybean oil dynamic is also at play.”
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