The markets are preparing for a record U.S. soybean crop this year, leading USDA to adjust their balance sheets. More supplies open the door for added exports, possibly putting a dent in the growing ag trade deficit.
“And with that bigger crop, we anticipate that some of that’s going to be exported given those larger supplies. So we raised our export forecast by 25,000,000 bushels and the bulk of the rest of it just ends up in ending stocks. So the ending stocks forecast was raised by 125 million bushels, now it is forecast at 560 million, and that would be up 215,000,000 year over year season average market price for soybeans. We lowered this month’s $0.30 per bushel, now forecast at $10.80 per bushel,” said Mark Jekanowski.
This year’s soybean crop has so far been in good shape. This week’s Crop Progress report shows it is well above the five-year average when it comes to crop conditions. USDA will soon be doing boots-on-the-ground tours of this year’s crops, and those findings are expected to be released next month.
