The November World Agriculture Supply and Demand Report released by the Department of Agriculture continues to project record soybean exports for the current marketing year.
Mac Marshall, United Soybean Board and U.S. Soybean Export Council Vice President of Market Intelligence, says USDA also lowered its yield estimate by 1.2 bushels an acre to 50.7, reducing the expected crop size roughly 100 million bushels to 4.17 billion bushels.
“Still a very, very large crop, still a lot of volume that we’re having on the books that’s destined for export channels. But, when you square it against total usage here, we’re now having a very, very tight carryout expected for this year. With that reduction, now our expected ending stocks are under 200 million bushels, 190 million bushels to be exact, and that’s the lowest carryover that we’ve had since the 2013-2014 marketing year.”
USDA puts the expected marketing year price at $10.40 a bushel, up from $9.80 last month and the highest since July of 2014. Marshall says exports are still pegged at a record 2.2 billion bushels.
“There wasn’t a revision to that this month, but it’s supported by the really robust export pace that we’ve had since the start of the marketing year on September 1st. We’re approaching 17 million metric tons exported already, we’ve got over 47 million metric tons of total commitments, and those are both record figures for this time of the year. It’s all speaking to an overall bullish environment where there’s a lot of really strong robust demand happening internationally.”
He says the United Soybean Board and the U.S. Soybean Export Council are committed to finding new markets and uses for U.S. soy.
“Us at USB and USSEC, we’re obviously continuing to work to ensure that there’s developing growth and opportunities for the marketing and application of U.S. soy, be it through new domestic uses or high-volume exports overseas. We’re committed to showcasing the advantage of U.S. soy from a compositional standpoint to new and existing international buyers and also looking at new industrial uses that we have domestically.”
For more visit the Market Intelligence page under Farmer Resources at unitedsoybean.org
Source: United Soybean Board press release