March 13, 2006

USDA raises US soybean stocks forecast, sees less exports

The US Department of Agriculture Friday raised its forecast for 2005/06 soybean ending stocks in the US by 10 million bushels due to a new prediction for lower-than-expected exports.

The new US soybean carryout forecast, released Friday in USDA's monthly supply and demand report, is for a new record-high of 565 million bushels, up from USDA's February prediction of 555 million bushels.

The record US soybean carryout is 536 million bushels, set in 1985/86. The US marketing year for soybeans runs September 1 through August 31.

Higher ending stocks were generally expected by market analysts who pointed disappointing sales to foreign markets.

The USDA lowered its forecast for soybean exports to 900 million bushels, down from its February forecast of 910 million bushels.

That, USDA said, reflects mainly lower sales to China and the European Union.