USDA lowered its soybean ending stocks forecast by 50 million bu. from last month. Traders were expecting a 32-million-bu. reduction in old-crop soybean carryover. USDA made no changes to the supply side of the balance sheet. On the demand side, it increased exports by 50 million bu. and left the other usage categories unchanged from last month. USDA now projects the national average on-farm cash soybean price at $8.75, down a quarter from last month.
Note: This is USDA’s first forecasts since the Phase 1 trade deal with China was signed. The only direct China-specific commentary on U.S. exports that USDA included in this report was in soybeans. The department raised soybean exports for 2019-20 by 50 million bu. from last month, “partly reflecting increased imports for China.” USDA increased Chinese soybean imports for 2019-20 by 3 MMT to 88 MMT. China’s ag ministry left its 2019-20 Chinese soybean import forecast at 87.7 MMT earlier today. Read complete report.
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