Crisis in the Soybean Market
Soybeans, once largely unknown in western societies have become an important food staple around the world over the last twenty years. But now the world? soybean supplies are dwindling as skyrocketing demand makes it difficult for grower nations to keep pace. Many market analysts predict an acute soybean shortage in the near future. Prices for soybeans hit an 8 year high on the commodities markets last week, almost immediately after a report suggesting an imminent shortage was published in an influential trade magazine.
The report, published in the latest issue of AgroEconomics, suggest the shortage can be attributed to two related factors. First, Brazil , the second largest producer of soybeans after the United States , has been crippled by port strikes that have halted all shipments to other countries. Second, the strike in Brazil has created an increase in foreign and domestic demand for U.S. soybeans that has depleted U.S. stockpiles. At last report only 120 million bushels were left in U.S. reserves, less than a two week supply.
The shortage has become so acute that some U.S. food companies have had to reduce their production processes. Some are said to be considering closing their operations and laying off their employees until the situation improves.
Crisis in the Soybean MarketSoybeans, once largely unknown in western societies have become an important food staple around the world over the last twenty years. But now the world? soybean supplies are dwindling as skyrocketing demand makes it difficult for grower nations to keep pace. Many market analysts predict an acute soybean shortage in the near future. Prices for soybeans hit an 8 year high on the commodities markets last week, almost immediately after a report suggesting an imminent shortage was published in an influential trade magazine.The report, published in the latest issue of AgroEconomics, suggest the shortage can be attributed to two related factors. First, Brazil , the second largest producer of soybeans after the United States , has been crippled by port strikes that have halted all shipments to other countries. Second, the strike in Brazil has created an increase in foreign and domestic demand for U.S. soybeans that has depleted U.S. stockpiles. At last report only 120 million bushels were left in U.S. reserves, less than a two week supply.The shortage has become so acute that some U.S. food companies have had to reduce their production processes. Some are said to be considering closing their operations and laying off their employees until the situation improves.
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