Soyabean is facing a bearish outlook for 2025 due to several factors, such as record high Brazilian production, weak Chinese demand, uncertainty over US biofuel policy, and potential trade tensions between the US and China. This situation is not favorable for Indian soyabean growers who are already receiving prices lower than the minimum support price.
According to analysts, the global soyabean market is under pressure, with ending stocks for the 2024-25 season estimated at a record high. This has led to a decline in soyabean prices both globally and in India. In the US, soyabean supply has increased, leading to higher production and ending stocks.
The uncertainty over US biofuel policy is also affecting the soyabean market, with changes expected to come into effect in 2025. Countries like Brazil and Indonesia are set to adopt higher blending mandates for biodiesel, which could impact soyabean and palm oil prices.
In addition, trade tensions between the US and China could further complicate the soyabean market. The potential for tariffs on soyabean imports and retaliatory measures could disrupt trade flows and impact prices.
Overall, the outlook for the soyabean market in 2025 is subdued, with various factors contributing to a bearish sentiment. Farmers may consider shifting to other crops like pulses or maize in response to unstable soyabean prices. Stay informed about the latest developments in the soyabean market to make informed decisions about planting and marketing strategies in the coming year.
