Soybeans and Oil Crops, October 2019 (summary)
Low Yields Reduce 2019/20 Soybean Harvest
This month’s Crop Production report lowers USDA’s forecast of U.S. soybean production for 2019/20 by 82 million bushels to 3.55 billion. Mostly, the crop reduction is based on a lower yield, which is trimmed to 46.9 bushels per acre. Coupled with smaller-than-expected stocks carryover at 913 million bushels, total soybean supplies in 2019/20 are seen tightening by 175 million bushels to 4.5 billion. This month’s changes in 2019/20 soybean demand forecasts are minimal, but a sharp decline for beginning stocks and new-crop production is now expected to slash season-ending stocks to 460 million bushels. USDA raised its forecast of the 2019/20 U.S. season-average farm price for soybeans by 50 cents per bushel this month to $9.00 to reflect a tighter balance between supplies and use.
See the October Soybeans & Oil Crops Outlook report and previous reports.