INVESTING CHECKOFF DOLLARS
WHAT’S BEHIND THOSE STRONG SOYBEAN PRICES? 3 INDUSTRY USES SUPPORTING DEMAND
S
oybean markets have rebounded tremendously over the first half of 2021 after an extended period that was hampered by any number of factors, from international trade conflicts to African swine fever in China to economic disruptions brought on by the COVID-19 pandemic. But this spring has brought a breath of fresh air to soybean producers. “It’s just been a win-win situation on all fronts,” said Jason Frerichs, a grower in Roberts County who serves on South Dakota Soybean’s Research and Promotion Council and is a director for the United Soybean Board. “We’ve had a very strong meal market, and the oil market has gone up exponentially.” When markets are strong as they are, it’s all too easy to celebrate the moment without giving much thought to why things are the way they are. But it seems wise to use the opportunity to assess some of the source(s) of the upward trend and explore ways to sustain its momentum. INCREASED CRUSHING CAPACITY HELPS SOUTH DAKOTA GROWERS
First of all, it’s worth noting that the 2019 opening of an AGP® processing plant in Aberdeen has continued to support South Dakota producers— in addition to growers in North Dakota and western parts of Minnesota—with increased crushing capacity. “That’s made a huge impact,” said Frerichs. “It has helped significantly to have another market for our soybeans locally where they are made into oil and meal products that are then marketed further.” 12
Summer Issue 2021
SDSL
