WASDE Oilseeds: U.S. Soybean Production Raised on Higher Yield

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U.S. oilseed production for 2017/18 is projected at 130.9 million tons, up 3.9 million from last month mainly due to higher soybean production. Soybean production is forecast at 4,381 million bushels, up 121 million on higher yields. Harvested area is forecast at 88.7 million acres, unchanged from July. The first survey-based soybean yield forecast of 49.4 bushels per acre is 1.4 bushels above last month but 2.7 below last year’s record.

With higher production and lower beginning stocks, soybean supplies for 2017/18 are projected at 4,777 million bushels, up 2 percent from last month. U.S. soybean exports are raised 75 million bushels to 2,225 million on increased supplies and lower prices. Crush is reduced on lower global soybean meal import demand. Soybean ending stocks are projected at 475 million bushels, up 15 million from last month.

The U.S. season-average soybean price for 2017/18 is forecast at $8.45 to $10.15 per bushel, down 10 cents at the midpoint. The soybean meal price forecast of $295 to $335 per short ton is down $5.00 at the midpoint. The soybean oil price is forecast at 31 to 35 cents per pound, up 1 cent on both ends of the range.

U.S. changes for 2016/17 include higher exports, lower crush, and lower ending stocks. Soybean exports are raised 50 million bushels to 2,150 million on outstanding export sales and shipments through July. With lower crush only partly offsetting higher exports, ending stocks are projected at 370 million bushels, down 40 million from last month.

Global oilseed production for 2017/18 is projected at 576.7 million tons, up 2.8 million, mainly on a 2.3-million-ton increase for soybean production. The higher U.S. forecast was partly offset with a 1.5-million-ton reduction for India based on the latest government planting data indicating lower harvested area.

Soybean and canola production is projected down for Canada, where hot and dry weather conditions in the Canadian Prairies lowered yield prospects for both crops, and excessive rainfall in eastern Canada led to a lower soybean harvested area estimate.

Other changes include increased sunflowerseed production for Russia, increased rapeseed production for the EU, and lower peanut production for India.

Global soybean exports for 2017/18 are up 1.5 million tons as higher U.S. exports are partly offset by lower Argentina shipments. Beginning stocks for 2017/18 are raised based on lower crush and exports for Argentina for 2016/17. Coupled with higher production, 2017/18 soybean ending stocks are increased 4.3 million tons to 97.8 million.

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