September 8, 2009

US farmers are expected to produce a record soy crop of 3.2 billion bushels as ideal weather and new varieties planted this year boost yields, the head of an industry body said on Monday (Sep 7).

This is in line with the 3.199 billion bushels estimated by the US Department of Agriculture, but slightly lower than private estimates.

American Soybean Association (ASA) chief executive Miguel Escobar said that in addition to favourable weather, new- generation Roundup Ready soy, which were launched by Monsanto, improved yields 7 to 11 percent.

Escobar said production forecast is 2.8 tonnes per hectare, which is higher than normal due to new varieties that are used this year, adding that soy production is estimated close to 87 million tonnes or 3.2 billion bushels.

Crop estimates this week from Allendale Inc, Linn Group, FC Stone and Informa Economics were all above USDA's August forecast for a record soy crop of 3.199 billion bushels.

Chicago Board of Trade new-crop November SX9 soy futures have lost six percent since the beginning of this month on forecasts of the highest ever production.

However, Escobar said strong demand for US soy in the marketing year which began on September is likely to support prices.

US soy export sales for the 2009-10 marketing year have now exceeded 14 million tonnes, nearly twice the 7.6 million tonnes booked at the same point last year, as narrowing global supplies prompted buyers to book sales.

Escobar said the soy crop is running around one week behind normal and harvesting has started in southern parts of the US, which is likely to peak in early October.