Soybeans and Oil Crops, April 2018 (summary)
Strong U.S. Soybean Meal Demand Fuels a Record Soybean Crush
Brighter market conditions for domestic soybean processors prompted this month’s forecast increase in the 2017/18 crush by 10 million bushels to 1.97 billion. Higher forecasts for domestic use (by 250,000 short tons to 34.55 million) and exports (up 100,000 tons to 12.5 million) of soybean meal prompted the higher crush forecast. Coupled with a lower seed/residual use, season-ending soybean stocks for 2017/18 are forecast down 5 million bushels this month to 550 million.
Based on drought-related yield reductions and abandonment of sown area, USDA expects a decline in 2017/18 Argentine soybean production to a 9-year low of 40 million metric tons. Argentine soybean exports (October-September) are now expected to slump to an 18-year low of 4.2 million tons.