Opportunity win for rotational soybean crops this season

While country west of the New England is only just receiving moisture, coastal paddocks are ready to plant and the demand for early-variety soybean seed is strong from the Northern Rivers into the Brisbane Valley.

"Varieties like new Gwydir and proven 791 are going out the door," says chairman of Soy Australia Paul Fleming, who farms near Casino.

"Last year we were sweating on rain all the way through the season. We never had any surplus and it was too dry at the finish.

"Lately we have had 150mm. It's good to have an early break. This is the best start to a summer cropping season in our area in a long time."

Demand is strong and current prices range from $750 a tonne for livestock feed to $950/t for human consumption.

At these levels it was also high enough for dedicated Riverina growers, who have to budget for irrigation water, just justify planting the crop, said Seednet variety supplier, Simon Crane, Burrinjuck.

How long prices will last at this height is uncertain.

Managing director of soybean processor Mara Global Foods, Ross Larsson, warns the returns to growers are at the upper limit of what the end user can sustain.

With the drop in the Australian dollar, protein meal normally imported for chickens, pigs and farmed aquatic species, was being sourced domestically, pushing the price of non-genetically-modified product out of reach from the usual export buyers.

"Aussie beans are expensive," Mr Larsson said, "They are at prices I haven't seen. But the market can be volatile," hinting that once early contracts were filled there could be a softening.

"It's about a balancing act as the end user is only able to sell what the consumer wants to buy."

Meanwhile, Rabobank analysts predict key staples of sugar, corn and soybeans, to come down in price globally from their current highs.