November 10, 2006

 

USDA raises forecast for US soybean crop to record 3.2 billion bushels

 

 

The US will produce 3.204 billion bushels of soybeans for the 2006/07 marketing year, the US Department of Agriculture said Thursday (Nov 9) upon increasing its production forecast by 15 million bushels to a record 3.204 billion bushels.

 

Yields in the US are higher than expected, the USDA said in its monthly World Agricultural Supply and Demand Estimates report.

 

The USDA raised its estimate for the average US soybean yield to 43 bushels per acre, up from the October estimate of 42.8 bushels.

 

"Producers in the northern Great Lakes states, Delaware, New York, North Carolina and the Dakotas are realising higher yields than expected last month, while yield prospects decreased slightly as harvest progressed in Illinois, Kentucky, Missouri and Pennsylvania," the USDA said in its Crop Production report, also released Thursday.

 

In its supply and demand report, USDA said the soybean crush will also be stronger for the 2006/07 marketing year and farmers can expect higher prices for their soybeans, the USDA said.

 

As for soycrush, USDA puts it at 1.78 billion bushels, up from the October prediction of 1.775 billion bushels.

 

The USDA said Thursday its estimate for average farm price for soybeans is now in the range of US$5.40-6.40. The range predicted a month ago was US$4.90-5.90.

 

The soymeal production forecast is also higher than a month ago, although the soyoil production forecast has been lowered. USDA said. The soymeal production forecast is now 320,000 short tonnes, up from 300,000 in USDA's October report.

 

For soyoil, the USDA production forecast was lowered to 2.968 billion pounds, down from 3.029 billion pounds.