Feed millers in US to return to soy diets

By the end of the last month, Brent oil futures corroded to the nearly astonishing US$37 negative per barrel, swinging down at -US$40 level during the day. That means you were getting paid US$37 to get a barrel of crude oil. Such a favor to refineries.

Due to this ongoing situation, animal feed producers are returning to soybean diets after availability of dried distillers grains with solubles is falling short, considering ethanol halted operations and corn stocks pilled up and as more than 50% of the U.S. bio-ethanol plants closed or are about to, DDGS is not being processed as the demand knocks at their doors. Because of this U.S. farmers are now looking for alternatives and soybean meal is on top of that.

Despite higher costs for the soybean meal, prices are expected to remain lower as exports are not forthcoming as initially forecasted. Main concerns remain with feed supplementation, where the real differences are the reductions in feed-grade amino acids and in phosphorus contents. This can potentially impact the profit line of these industries.