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ADM, Bunge Expect Rising Global Demand for U.S. Soybeans

The Africa Swine Fever (ASF) scenario playing out in China has Archer Daniels Midland (ADM) and Bunge optimistic about future global demand for U.S. soybeans, reports Western Producer.

As AFS ravages China’s national hog numbers, expectations are that the disease will reduce the country’s total number of hogs from 700 million by about 20 to 30 percent.

This significant decline will place China in the position of having to import large volumes of pork along with high volumes of other meats from other countries. These countries in turn will need U.S. grain to support increasing their production and exports.

Juan Ricardo Luciano, president of ADM, forecasts that China will experience a 10 million ton deficit of pork protein, of which four million tons may be offset by beef and poultry, and the remaining six million tons by imported pork. This will lead to a significant increase in the global hog herd, and increased global demand for soybean meal.

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