WASDE Oilseeds: Lower U.S. Soybean Production, Stocks

    U.S. soybean supply and use changes for 2020/21 include lower beginning stocks, production, and ending stocks. Lower beginning stocks reflect increases in exports and crush for 2019/20. Soybean production is projected at 4.3 billion bushels, down 112 million on a lower yield forecast of 51.9 bushels per acre. Yield is down 1.4 bushels per acre from the August forecast.

    With soybean crush and exports unchanged, ending stocks are projected at 460 million bushels, down 150 million from last month. Other changes this month include higher peanut and lower cottonseed production.

    Soybean and product prices are all projected higher for 2020/21. The U.S. season-average soybean price is forecast at $9.25 per bushel, up 90 cents from last month. The soybean meal price is projected at $315 per short ton, up 25 dollars. The soybean oil price forecast is 32.0 cents per pound, up 2 cents.

    The 2020/21 foreign oilseed supply and demand forecasts include higher production, exports, and ending stocks. Higher foreign production of soybeans, cottonseed, peanuts, and rapeseed is partly offset by lower sunflowerseed.

    Soybean production is raised for Brazil, Canada, and India, and lowered for Ukraine. Brazil’s 2020/21 soybean crop is raised 2 million tons to 133 million, mainly on increased area as producers face stronger prices and competitive exchange rates ahead of planting. Brazil’s production for 2013/14 to 2018/19 also reflects revisions by Brazil’s National Supply Company (CONAB).

    Soybean production forecasts for Canada and India are raised on recent government data and planting progress reports. Ukraine’s soybean production is lowered due to low rainfall throughout August.

    Global soybean exports are raised 0.9 million tons to 166.3 million, with higher exports for Brazil and lower exports for Ukraine based on available supplies. Crush is reduced for Argentina in line with the prior year’s reduction. Global ending stocks are reduced 1.8 million tons to 93.6 million as lower U.S. stocks are partly offset by higher foreign stocks, particularly for Argentina and Brazil.

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