China and Biofuels are Growth Markets for Soybeans

Nov 22, 2021

Demand for U.S.-grown soybeans will heat up because of the volume needed by China and the biofuels industry, according to market experts analyzing projections from the USDA. Kevin McNew, Chief Economist for the Farmers Business Network, provided analysis for the recent United Soybean Board (USB) and U.S. Soybean Export Council (USSEC) webinar on the November World Agricultural Supply and Demand Estimates. McNew was asked for his take on demand for U.S. soybeans exported to China given talk about Chinese crush margins being tight while there is also a belief that the Chinese might begin to stockpile commodities.

“[The Chinese market] may not be growing as much as it has in the last decade, but it’s still a growth market,” said McNew, during the webinar. “Southeast Asia is a growth market, I mean there are so many growth markets, as I’m sure you guys [at the USSEC] are well aware because you’re creating those markets. Yeah, we’re going to have ups and downs with China; I don’t see anything systematic that concerns me around this. It was a haircut going from 101 million metric tons to 100 million metric tons [in projected Chinese soybean imports]. Again, that can quickly turn north if we see margins turn quickly like they have historically.”

Where domestic demand is concerned, McNew says investment in biofuels infrastructure and soybean crush capacity influences projected soybean demand.

“What’s unique about this is this co-investment by Big Oil and Big Ag,” said McNew. “That’s really something we have never seen happen in this space. It didn’t happen in ethanol. It was strictly farm co-ops and then venture firms that were going to invest in these plants, but now you have these alliances forming. For example, ADM, one of the world’s largest soy processors, is now in a joint venture with Marathon Energy to build the first soybean plant in North Dakota.”

Webinar host Mac Marshall, vice-president of market intelligence for the USB and USSEC, added his perspective about the investment happening in refining and crush capacity.

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Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.