USDA’s September World Agricultural Supply and Demand Estimates report predicts a smaller soybean crop than previously forecasted, but still the fourth largest on record. Mac Marshall, United Soybean Board and U.S. Soybean Export Council Vice President of Market Intelligence, explains.
“Well, the biggest thing was the sharp reduction to yields. As recently as last month we were looking at a potential record crop for this season. That no longer appears to be the case but with USDA’s downward revision to yields, taken down to 50 and a half bushels to the acre, overlaid with a slight reduction in projected planted and harvested area, we’re now looking at a crop of just under 4.4 billion bushels, down 153 million bushels from last month but still the fourth largest on record.”
Marshall says farmers faced a few headwinds getting the soybean crop to harvest season.
“I think even with the dryness that we felt throughout August, and if you rewind further than that, a lot of the wetness that impeded early during planting season, even with all these tumultuous weather over the course of the season, our farmers still have been producing an excellent crop here and it comes at a time when the world really needs it.”
Marshall says that despite weather headwinds, this is still a large crop.
“I think at September we generally have a pretty good idea of where the crop’s going to stand. So, we’re looking at about 120 million metric tons. Still strong overall, again, trailing only the 21, 18 and 17 crops, in total. So, we’re putting a good volume into the marketplace, which is absolutely critical, and farmers are looking at strong prices but again, those margin pressures continue to be present.”
Keep up with the latest news from the United Soybean Board at unitedsoybean.org and Wednesday mornings at 10 a.m. Eastern / 9 a.m. Central on RFD-TV.