LONDON (Commodity Online): Soybean demand across the world would surge as far as the demand for the meat exists, Jeffrey Currie, head of commodities research at Goldman Sachs was quoted by Dow Jones Newswires.

Soy products are the main sources of protein for animal feed and the demand for soy products is dependent on meat demand, he said on the sideline of the Food Security Conference in London.

The demand for the soybean is expected to increase 3.5% as compared to 2.5% for corn and 1% for wheat, he added. In order to bridge the demand and supply gap, the acreage for the crop should be expanded, he said.

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Event though US, China, Brazil and Argentina produce around 95% of world’s soybean, only Brazil has the most potential for expanding its production, Currie said.

“Brazil is the global powerhouse for growing world commodity supply,” said Currie.

“The core problem in Brazil is infrastructure, not productive land capacity.” The bank’s 12-month forecast for U.S. soybean futures is $10.00 a bushel. “But looking into 2011 and beyond we see significant upside,” said Currie.

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