August 14, 2006

USDA sees lower 2006/07 US soy production, ending stocks

US farmers will be producing fewer soybeans and carryout stocks will be lower than expected, the US Department of Agriculture said Friday (Aug 11), based on its first field survey for the 2006/07 crop.

The USDA, in its monthly supply and demand report, put the new soybean production forecast at 2.928 billion bushels, down from the July forecast of 3.01 billion.

The forecasts for soybean exports and crush were not reduced, though, and the USDA dropped its prediction for 2006/07 ending stocks to 450 million bushels, down from the July forecast of 560 million.

Lower US soybean production, the USDA said, is expected because of weaker-than-expected yields in many growing areas.

The USDA lowered its forecasted national average soybean yields to 39.6 bushels per acre, down from its July forecast of 40.7 bushels.

Lower yields were noted particularly in "the Great Plains, the western corn belt and the Gulf Coast states," the USDA said.