Soy Outlook: Well Supported Despite S-T Risks

May 2008 | Market Strategy

Over the long term, though, we believe that soy prices are likely to remain elevated as the threat of supply shortages amid rising global demand for both soy oil and soy meal put a floor under any potential sell off. Regarding supply, developments in Argentina (the third largest soy producer and responsible for 15% of global exports) will likely play a key role. Farmers and the government have resumed talks for a second time since the farmers rejected the export tax in a bid to come to an agreement which would see the soy export market return to normal. Continued

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