by Ben Nuelle LISTEN: Money Matters 7-11-16
The U.S. is the 3rd of the largest consumer of soybeans which makes us very competitive when looking at the world stage.
Sam Funk is chief economist at the United Soybean Board.
Funk spoke at the Iowa Farm Bureau’s Economic Summit a few weeks ago. He says the U.S. is blessed to provide excess supplies but also provide demands back at home as well.
“Which makes us very competitive when looking at the world stage. It becomes a question of looking at transportation costs and looking at what the logistics are of moving that grain. Frankly, we’ve got a demand here which first means you have to compete against a domestic demand.”
Funk says trade is also predicated on what do we have as far as a domestic marketplace.
“Brazil… Obviously we’ve seen this since the mid 90s who has been growing in their production. They are fairly still export dependent. They have been able to feed more Soy down their of poultry on that side but they don’t have that many stocks so they have to move it somewhere which makes them a price taker.”
He says Argentina is even more of an export dependent area.
“Since 2014, with the change in their government. They really had a change in economic policy and they needed a lot of dollars very quickly to come in to be able to sustain some of those changes in their economy.”