US seen to hit record soy exports this year

US soy exports are expected to hit a record 1.21 billion bushels this marketing year, helping to lower stockpiles to 165 million bushels, the smallest in five years, the government said Thursday (Apr 9).

 

The remaining stockpile will be sufficient for only a three-week supply, and it could become smaller because of high soy demand, said Don Roose, analyst for US Commodities.

 

The USDA raised its soy export forecast by 25 million bushels due to strong demand from markets such as China and less competition from South America.

 

Drought had severely impacted Argentina's crop, now estimated at 39 million tonnes, down four million tonnes from the March estimate.

 

The previous US soy export record was 1.16 billion bushels in 2007-08.

 

USDA's forecasts boosted soy futures prices at the CBOT. At midday, soy for delivery in May <3SK9> sold for US$10.15-1/2 a bushel, up 9-3/4 cents. May corn <3CK9> was US$3.98 a bushel, up 1 cent. May wheat <3WK9> was down by 2-1/2 cents, to US$5.29-1/2 a bushel.

 

USDA said soy would sell for an average US$9.65 per bushel at the farm gate in 2008-09.

 

Soy exports to China remain strong, as the world's most populous country crushed the soy to produce livestock feed ingredient.