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Demand for high-oleic soybeans still outpaces supply

A United Soybean Board leader says farmers with the right locations should consider growing high oleic soybeans next year.

John Jansen is the board’s Vice President of Strategic Partnerships, and he says, “The demand is currently outpacing supply.”

Jansen tells Brownfield he expects there will be between 600 and 700-thousand acres of high oleic soybeans in 2021 and more in years to come. “Seed folks, now that they’re not surprised anymore, they’ve committed to a minimum of 1.2 million planting acres. We have demand for that.”

And, Jansen says premiums for the high oleic beans have almost doubled because of demand. “It’s really weird because of the demand. We’re actually seeing processors, I don’t want to name names, but, processors are actually hauling volumes outside of their normal draw area and normal regions in order to make their volume committments to end-users.”

Jansen tells Brownfield the three largest buyers are ADM, Bunge, and Purdue with much of the production in Indiana, Ohio, and the Delaware-Maryland-Virginia region, but one eastern processor is bringing the soybeans by rail from farms in South Dakota to meet their demand.

Jansen says the Soyinnovation.com website and local seed dealers can refer farmers to both the seeds and processors that want to buy the crop. 

Jansen says one reason for the shortage of high oleic soybeans is seed availability in some regions.  “The high-oleics are in Liberty Link protection for the most part, and so the reason we just don’t explode the varietals with new technology is that they’re just now getting around to their Xtend and Enlist protection systems.”  Jansen says those options will be available in 2023.