Demand for soybeans, corn still growing, agri-giant Bunge says
A combination of buoyant demand and supply-side jitters is supporting prices of soybeans and corn after several years of glut-driven pessimism.
Soybean and corn prices have rallied by more than 20 percent since the first quarter of the year due to production declines in South America contributing to tightness in the U.S. market, agri-giant Bunge's Chief Executive Soren Schroder said on the sidelines of a JPMorgan conference in Beijing.
The rally follows the start of the growing season in the U.S. in April.
"One thing that has been very predictable is the growth in demand, almost irrespective of the price levels," he said.
The major soybean producers Brazil and Argentina experienced adverse weather in the last few months, hitting production and creating tensions in the global demand and supply of the commodity, he said.
Weather-driven risks such as the El Nino and La Nina weather phenomena also contributed to the risk premium, he said.