International Soybean Prices Rise for Three Consecutive Months Through November 2023

Data compiled by investing.com shows that the monthly price of soybeans in the United States international futures market/two-month contract increased for three consecutive months until November 2023.

Specifically, the average monthly price in September 2023 reached US$1,275 per bushel, or Rp19.76 million (assuming an exchange rate of Rp15,502 per US$). The price then increased again in October 2023 to US$1,310.50 or Rp20.31 million.

The latest data on November 17, 2023, shows that the average price for the month accumulated to US$1,354.75 or Rp21 million.

The November 2023 price is lower than November 2022, which reached US$1,469.50 (Rp22.78 million), representing a 7.8% year-on-year (YoY) decrease.

However, the price this month is up 11.29% (YoY) from the previous November 2021 price of US$1,217.25 or Rp18.86 million.

The United States Department of Agriculture (USDA) explained in its release that soybean and corn production in the US has decreased since September 2023.

The USDA stated that soybean production from farmers is expected to fall 4% from 2022, to 4.10 billion bushels. Meanwhile, corn production is expected to reach 15.1 billion bushels, down less than 1% from the previous estimate.

Citing *Katadata*, the Indonesian Tempe and Tofu Producers Cooperative Association (Gakoptindo) stated that at least 15,000 tempe and tofu producers have gone out of business this year. This is due to the rising price of soybeans, which reached Rp13,000 per kilogram in early October 2023.

Gakoptindo Chairman General Aip Syarifuddin said that soybean price fluctuations are normal between April and November.

However, according to him, the price increase usually slows down in November, which is not the case this year. Soybean prices remain high due to decreased production in the United States and Brazil due to El Niño.

"The condition of tempe and tofu producers in Indonesia is currently concerning due to the uncontrolled price of soybeans," Aip told Katadata on Thursday (16/11/2023).

Aip said that the increase in domestic soybean prices is not only due to the global increase in soybean prices but also the weakening of the rupiah. He noted that the domestic soybean supply still depends on imports purchased using US dollars.

The National Food Agency (NFA) recorded a national average soybean price of Rp13,320 per kg on Thursday (16/11/2023). This figure is up 2.14% or Rp280 per kg month-on-month.