Ankeny, Iowa, USA
March 8, 2013

The U.S. Department of Agriculture’s World Agriculture Supply and Demand Estimates (WASDE) report released today predicts the nation’s soybean reserves will remain at their lowest levels in half a decade.

The report estimates 2012/13 soybean ending stocks at 125 million bushels, unchanged from last month. Although soybean export commitments through February exceeded last year’s pace, the report said U.S. exports are expected to decline in the months ahead as increased competition from a record South American crop limits additional sales during the second half of the marketing year.

Iowa Soybean Association (ISA) President Mark Jackson of Rose Hill said even though stocks remain unchanged, the market’s reaction shows ongoing concern for adequate world grain and oilseed stocks. There may be short-term marketing opportunities for the state’s farmers.

“Our world trading partners are cautiously watching the commodity market prices, which are rationing usage to bridge those gaps between crops while maintaining adequate grain stocks,” Jackson said. “ISA has ongoing travels to maintain a positive dialogue to reassure customers that a consistent, adequate and quality supply of soybeans and related products will be available. Our upcoming trip to China, the largest customer for U.S. soybeans, is one example of those efforts.”

ISA farmer leaders and staff members will travel to China March 15-24.

“China continues to buy commodities from the United States, even as recently as this week,” said Grant Kimberley, ISA director of market development. “We are working to be as proactive as possible and exploring new and growing markets in China.”

The group will visit aquaculture facilities while in China. The industry is one of the country’s fastest growing segments using soybean meal for feed. “Building strategic partnerships now will benefit all us down the road,” said Kimberley.

The group will visit China as the country welcomes its new president Xi Jinping. Xi first traveled to Iowa in 1985 as part of a Chinese delegation studying American agriculture and returned last year. The Iowa Soybean Association has maintained its relationships with Xi and Chinese industry partners.

“While we won’t be meeting with Xi, we are looking forward to celebrating his new position,” said Kimberley. Xi visited the Kimberley farm last year. “Iowa farmers have a unique connection with Xi and China and we’re excited to strengthen our partnerships to benefit both countries.”

The WASDE report projects the U.S. season-average soybean price will range from $13.80 to $14.80 per bushel. The price narrowed 25 cents on each end from last month. According to the report, the U.S. soybean crush is ahead of last year’s pace, but it projected to slow in the second half of the marketing year.
 

Website: http://www.iasoybeans.com

Published: March 8, 2013