Absa AgriTrends 2022

US 2020, 2021 and 2022 Good-excellent Soybean Condition Ratings

2021

2020

2022

80

75

70

65

60

55

50

Source: USDA, 2022

• Global price decreases are,

Looking Ahead

however, expected to be limited due to continued demand for biofuels. As blending percentages for biodiesel are higher than that of ethanol, demand for non-fossil fuels is likely to support global prices above USD 11.00 per bushel. • As with corn, ongoing production and trade disruptions from Ukraine could affect sunflower seed and crude oil prices, which would likely also limit the degree of price decreases for oilseeds in general.

• Average yearly SAFEX soybean prices for 2023 are projected to decrease by almost 7.5% compared to 2022 levels. • This is underpinned by lower global prices as higher interest rates start to curb aggregate demand and the agricultural commodity price run of late. Record prices for vegetable oil

• As discussed above, crop size and quality issues in the Northern

Hemisphere present upside risk to the above price trajectory and could delay the rate of price decreases over the coming seasons.

have also resulted in demand destruction and easing global demand is expected to weigh on prices.

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