July 3, 2006

USDA cuts 2006 US soy planting estimate

The US Department of Agriculture on Friday (Jun 30) lowered is estimate for US soybean acreage to 74.9 million acres, down from its previous March forecast of a record-breaking 76.9 million acres, and said soybean stocks are strong at 990 million bushels.

Market analysts generally expected the USDA's downward shift on its soybean acreage expectations because of the swift start in corn planting this year and strong corn prices with improving demand.

Despite the decrease from March, USDA's June acreage report concentrated on the 4 percent increase in soybean acres over last year.

"With the exception of Ohio and South Dakota, planted acreage increased or was unchanged from last year throughout the corn belt and adjacent areas of the Great Plains and Mississippi Delta," the USDA said. "States with new record-high soybean planted areas include Kansas, North Dakota and Pennsylvania."

Farmers in North Dakota and Illinois also showed acreage increases for soybeans, the USDA said. "Illinois growers are shifting to soybeans from a record-high corn planted area and below normal corn yields in 2005."

The USDA, in another report Friday, estimated that soybean stocks in all positions totalled about 990 million bushels as of Jun 1. That's down from the 1.67 billion bushels estimated as of Mar 1, but up 42 percent from Jun 1, 2005.

"This is the largest Jun-1 stocks level on record, exceeding the previous record set in 1986 by 17 percent," the USDA said.