US soymeal prices to rise due to lower soy production

USDA raised its soymeal price forecast for 2008/09 (September-August) by US$60 per short tonne to a range of US$355 to US$415 based on expected lower soy stocks this year and the next.

The agency made the statements in its latest World Agriculture Supply and Demand report released Friday (July 11, 2008).

Soy production, acreage and yield were all reduced for this year due to Midwest flooding.

The 2008/09 soy price forecast was also raised by US$1.00 per bushel to a range of US$12.00 to US$13.50 per bushel.

Meanwhile, USDA raised its forecast of 2007/08 corn ending stocks by 165 million bushels due to lower use expected for food, seed, industrial, feed and residual use this year.

Corn use for ethanol production in 2007/08 was lowered by 50 million bushels due to reported delays in plant startups and construction, as well as lower expected plant capacity utilisation.

USDA raised its 2008/09 corn price forecast by 20 cents per bushel to an average of US$5.50 to US$6.50 per bushel in 2008/09, up from an expected average of US$4.25 to US$4.45 per bushel in 2007/08.