Prices will reduce demand for corn and soybeans for feed
An increase in the price of soybeans and corn in the last four weeks, rising to record levels, will reduce global demand from farmers, as they will cut the number of animals held and step up the search for cheaper alternatives, said the consultancy specializing in oilseeds, Oil World, on Tuesday.
"The recent explosion in food prices will inevitably lead to decreasing demand in the use of corn and soybean meal for animal feed in the coming months," said Oil World. "Once the number of animals falls, particularly pigs, there will be a significantly smaller demand base for some time, and a switch to wheat will decrease the use of corn and soybean meal," it added.
Information provided by Reuters