The Census Bureau started reporting use of all soybean oil for production of methyl ester in October 2006. In the 56 months since then, use exceeded 300 million pounds in only four months, the latest being August 2008, he said.
Corn prices should continue to be well supported by a high rate of consumption and prospects for small year-ending stocks. Evidence of a slowdown in corn consumption is still needed. The record-large Brazilian soybean crop, along with the observed slowdown in consumption of U.S. soybeans, provides less support for soybean prices, Good noted.
"The market will now also begin to reflect prospects for the 2011 crops. Corn planting is on schedule in the South and has started in the Midwest. Concern is mostly centered on the potential for a late start to planting in northern growing areas," he said.