| Soybeans
& Soybean Meal Price Trend
World Soybean Prices
Although soybean prices fluctute irregularly
over the 10-year period, between 1990-2000, they all follow
the same patern. During the first half of the 1990's, soybean
prices remained somewhat steady. In other words, the change
in prices from one year to another was less dramatic than
that of the second half. Since its peak in 1996/97, global
soybean prices have plummeted. In 1999/00, global soybean
prices reached their lowest record of US$ 175 - 208.
Source: United States Department of Agriculture (USDA)
In 1993/94 and 1995/96, soybean prices reached
their peaks at US$ 234 - $ 259 and $ 273 - $ 304 /ton. This
sudden growth in soybean prices come mainly from the increased
usage of soybeans in the crushing industry. After the first
peak if 1993/94, soybean prices fell to the 1991/92 level
of $ 208 - $ 248 /ton. This fall in soybean prices was influenced
partly by the reduction in soybean usage and partly by the
abundant supply that outran the demand. In 1997/98, the
story repated itself with a downward spiral of global soybean
prices, which is due mainly to the surge in global soybean
production. This downward trend continued until it reached
the record bottom of $ 175 - $ 208 in 1998/99, when supply
remained excessive. The situation will improve in 2000/01,
as demand for soybeans in animal feed picks up again.
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