French expert: soybean prices will rise in 2009

French expert: soybean prices will rise in 2009. French agricultural product research experts predicted in mid-December 2008.

Gathered at the French Ministry of Economic Affairs to discuss the trend of world agricultural product prices in 2009, they believed that agricultural product prices were imbalanced and would show an upward trend from now until three years later. E. Yaye, an agricultural product research expert at Socie?te? Ge?ne?rale, pointed out that the market would tighten from the first half of 2009, with the first signal coming after the harvest of soybeans in Latin America in March and April.


French agricultural experts believe that there are three factors that will lead to a rapid rebound in agricultural product market prices:

? ?Firstly, the natural climate will be unfavorable.

? ? ?In 2008-2009, global wheat production reached a record high of 683 million tons, largely due to favorable climatic conditions in most wheat-producing countries (with the exception of Argentina). However, in 2009, the weather conditions in major wheat-producing countries may turn unfavorable. Under such circumstances, global wheat production could potentially decrease by 40 million tons.

? ?Secondly, the sown area of wheat has decreased.

? ? ?In a recent report, the Food and Agriculture Organization of the United Nations (FAO) pointed out that the sown area of wheat decreased in 2009-2010, especially in major wheat-producing countries in Europe and North America, due to the decline in prices on the international market. According to statistics from the French Ministry of Agriculture, the sown area of winter wheat in France decreased by 0.7%, and the decrease in the sown area in the southwestern part of France even reached 5%-7%.

? ?Thirdly, demand continues to grow, yet investment in agriculture remains insufficient.

? ? ?Due to the impact of the crisis, the issuance of production loans has become extremely strict, leading agricultural producers to reduce investment. Therefore, the World Bank's report states, "This will result in a strong rebound in prices in 2009-2010." Although demand growth is slow but sustained, with an annual growth rate of about 1%-2%. The balance of the market largely depends on China and Western consumers. Due to the economic recession, meat consumption in developed countries has declined, which has eased pressure on the grain market, as livestock farming consumes about half of grain production. However, E. Yaye, an agricultural product research expert at Socie?te? Ge?ne?rale, believes that the rapid growth in Chinese demand offsets other reductions. The French agricultural product research expert was in mid-December 2008.

Gathered at the French Ministry of Economy to discuss the trend of world agricultural product prices in 2009, they believed that agricultural product prices were imbalanced and would show an upward trend from now until three years later. E. Yaye, an agricultural product research expert at Socie?te? Ge?ne?rale, pointed out that the market would tighten from the first half of 2009, and the first signal would be sent out after the harvest of soybeans in Latin America in March and April.


French agricultural experts believe that the three factors that will lead to a rapid rebound in agricultural product market prices are:

? ?Firstly, the natural climate will be unfavorable.

? ? ?In 2008-2009, global wheat production reached a record high of 683 million tons, largely due to favorable climatic conditions in most wheat-producing countries (with the exception of Argentina). However, in 2009, the weather conditions in major wheat-producing countries may become unfavorable. Under such circumstances, global wheat production could potentially decrease by 40 million tons.

? ?Secondly, the sown area of wheat has decreased.

? ? ?In a recent report, the Food and Agriculture Organization of the United Nations (FAO) pointed out that the sown area of wheat decreased in 2009-2010, especially in major wheat-producing countries in Europe and North America, due to the decline in prices on the international market. According to statistics from the French Ministry of Agriculture, the sown area of winter wheat in France decreased by 0.7%, and the decrease in the sown area in the southwestern part of France even reached 5%-7%.

? ?Thirdly, demand continues to grow, yet investment in agriculture remains insufficient.

? ? ?Due to the impact of the crisis, the issuance of production loans has become extremely strict, leading agricultural producers to reduce investment. Therefore, the World Bank's report points out that "this will result in a strong rebound in prices in 2009-2010." Although demand growth is slow, it is sustained, with an annual growth rate of about 1%-2%. The balance of the market largely depends on China and Western consumers. Due to the economic recession, meat consumption in developed countries has declined, which has eased the pressure on the grain market, as the livestock breeding industry consumes about half of the grain production. However, E. Yaye, an agricultural product research expert at Socie?te? Ge?ne?rale, believes that the rapid growth of Chinese demand offsets other reductions. rise