Lower soybean meal and oil prices expected to continue
A market analyst says lower soybean meal and oil prices might continue into early next year.
Mike Zuzolo says soybean oil has a strong relationship with income and any possible recession.
“Soybean oil is expected to be used for sustainable aviation fuel,” he says. “I’m concerned that if we do go to a recession and if these record priced flights we’re hearing about in 2023 drop off dramatically, because people can’t afford to fly anymore as much as they have since the pandemic, that will affect bean oil prices.”
And Zuzolo says currently, weather concerns in Brazil are weighing on soybean meal prices.
“Some of the longer-term weather models last week were suggesting maybe some reprieve from the drought of Mato Grosso and other parts of Brazil. I think weather premium is being taken out of the market right now instead of crush.”
Brownfield interviewed Zuzolo at the NAFB Convention in Kansas City, Missouri.