Soybean Hulls Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Soybean Hull in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Soybean Hulls Price Trend for the First Half of 2023

Soybean hulls are the Soybean residue left behind in the Soybean oil mulling process. They are extensively used as animal fodder and sugar sources for various fermentation processes.

During the first half of the year 2023, the Soybean Hulls market exhibited muted sentiments. The biggest factor responsible for the depreciation in prices was the decline in upstream costs because of the reduction in feedstock soybean prices and the attempts for global trade normalization.

The black sea deal mediated between Russia, Ukraine, and the United Nations also helped the global supplies, along with re-established supply chains and trade routes. Normalizing crude oil prices aided the transportation charges; thus, an overall fall in commodity prices was observed. Though some regions like China and South America had temporary and very short phases of reverse fluctuations, the general trend remained weak.

Analyst Insight

According to Procurement Resource, the price trend for Soybean Hulls are likely to fluctuate in the coming months, given the volatile feedstock soybean market.

Soybean Hull Price Trend for the Second Half of 2022

The prices of soybean and its allied products such as soybean hulls inclined in the food market globally after a long stagnant period. In India, the government removed the stock limit on wholesale dealers and big retail chains, and due to this, the prices of soybean in the region gained the necessary support. The prices thus, inclined gradually in the Asian Pacific region. In China, the stockpiles, however, declined, and the nation also reduced its imports. Being the largest importer of soybean, the adverse trend followed in China affected the price trend of soybean negatively.

The prices in the North American region followed a fluctuating trajectory. The prices grew steadily in the third quarter and the market saw the highest price range of soybeans in this region historically. This gradual incline was attributed to the rise in uncertainties due to the Russia-Ukraine war and the low level of crop production in the region. The domestic demand and export of the commodity remained the strong suit of North America and thus fueled the price trend of soybean. Hence, in line with the high soybean prices, the prices trend for soybean hulls inclined during the said period.

Analyst Insight

According to procurement resources, soybean prices are likely to decline in the upcoming quarter while they will still be at a higher level as compared to past years. The negative market sentiments from China and the low production of crops will play a major role in driving the price trend of soybean and its allied products.

Soybean Hull Price Trend For the First Half of 2022

The high-cost inflation and trade restrictions coupled with the adverse weather phenomenon drove the prices of soybean to unprecedented levels, thereby affecting the price trend for soybean hulls. Brazil, Paraguay, and Argentina which account for more than 50% of soybean supply are experiencing drought-like conditions since November 2021 owing to the phenomenon of La Nina.

The unviable weather conditions drove down the global estimates of soybean production causing soybean prices to inflate globally due to supply shortages and market uncertainties. Argentina registered a 7.2% fall in production as compared to the past planting season while Paraguay witnessed a staggering 50% decrease.

La Nina further worsened the conditions in Brazil, with rains in North Brazil and droughts in South Brazil the net soybean production declined by 32.5%. The soybean futures traded in Chicago averaged 16 USD/bushel. In the Brazilian market, the price of soybean averaged 39.35 USD/60kg bag. Hence, owing to the staggering soybean prices amid strong demand from the feed sector the prices of soybean hull increased during the said period.

Procurement Resource provides latest prices of Soybean Hulls. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.