Speciality Soybean Update.

I had the opportunity to sit down with Bruce Irons, Speciality Soybean Manager with Syngenta Seeds Canada and discuss the Speciality (IP) soybean market for 2011 and the future. Reduced premiums in 2011 are mainly due to the full pipeline of clear hilum soybeans for the Japanese market. The oversupply according to Irons is due to the increased acreage planted in 2009 and the high yields of soybeans over the last couple of years. This has led to a soft market, reduced premiums and less acres contracted in 2011. There has been increase shipments into south-east Asia and that market is opening up for speciality food soybeans. This market is generally very price sensitive and uses dark hilum lower value soybeans. Reduced premiums and oversupply of food grade soybeans are driving this market.
The high soybean price on the CBOT has that affected the IP market? Irons feel that it has in that growers may ask themselves if it is really worth growing an IP soybean and the extra work and cost that is required. Canada is recognised for producing high quality, high protein soybeans and to be able to provide soybeans in this niche market and it would be disappointing to lose our global competitiveness and leadership by moving away from the IP market in the short-term. Why should you grow an IP soybean over a glyphosate tolerant soybean? Three main reasons – protect our niche market that we have established, help reduce the threat of glyphosate resistance weeds and yield. OOPSCC trials in 2010 show that on average the conventional soybeans yield approximately two bushels more than the glyphosate tolerant soybeans.
What can we expect in 2012? The exporters have communicated to Irons that expectations are to return to a normal demand and premium as seen in the past.

For the full interview click here or watch on YouTube : IP soybean interview – January 2011.

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