May 15, 2006

USDA expects record-breaking soy ending stocks for 2006/07

US soybean ending stocks will reach a record-breaking level of 650 million bushels for the 2006/07 marketing year, the US Department of Agriculture said Friday (May 12) in its monthly supply and demand report.

That forecast--part of the first 2006/07 predictions released by USDA--is up 85 million bushels from the predicted 2005/06 carryout of 565 million bushels.

The USDA left its 2006/07 soybean production forecast of 3.08 billion bushels almost unchanged from the 2005/06 production level of 3.086 billion bushels, but raised the prediction for exports.

"Large US soybean supplies combined with lower-than-expected Brazilian stocks are projected to boost US soybean exports to near-record levels," the USDA said.

The USDA on Friday set the US 2006/07 soybean export forecast at 1.09 billion bushels. That's up from 900 million bushels predicted for 2005/06 exports.