July 13, 2007

USDA cuts forecast on US 2007/08 soybean production

As farmers chase demand from the US corn-based ethanol industry, less soybean production is expected for the 2007/08 marketing year according to the US Department of Agriculture, which also lowered its forecast for ending stocks.

The new USDA forecast for soybean production -- released Thursday in the government's monthly supply and demand report -- is 2.625 billion bushels, a drop from the June prediction of 2.745 billion bushels.

The soybean ending stocks forecast for the 2007/08 marketing year has dropped to 245 million bushels, down from 320 million in June.

And prices for farmers have risen, the USDA said. The average range is now US$7.25 to US$8.25 per bushel, up from the USDA forecast a month ago for US$6.65 to US$7.65 per bushel.