May 18, 2023
US soybean production set to rise, export market poses challenges
Industry analysts are predicting a substantial increase in US soybean production this year, with hundreds of millions of additional bushels, but they warned that it is going to be a challenging market for US soybean exports, RFD-TV reported.
The initial forecast for the crop anticipates a rise of approximately 4.5 billion bushels, marking a 5% surge compared to the previous season. However, soybean exports are projected to experience a two percent decline.
Mark Jekanowski, chairman of the World Agricultural Outlook Board, US Department of Agriculture, said that timing plays a crucial role in this situation.
Jekanowski said that there will be a significant increase in global soybean supplies, and many of these will enter the market precisely when the US soybean export campaign is commencing.
He also said that US soybean stocks are expected to witness a growth of around 50% during the upcoming marketing year, leading to a subsequent drop in prices by nearly 15%.