Ankeny, Iowa, USA
January 10, 2014

One of the most important crop reports of the year was “neutral to friendly” to soybeans, according to Grant Kimberley, Iowa Soybean Association’s (ISA) director of market development.

Today’s U.S. Department of Agriculture (USDA) final 2013 Crop Production Report increased the nation’s soybean harvest to nearly 3.3 billion bushels, up 31 million from the previous estimate. The average yield is pegged at 43.3 bushels per acre, up .3 bushels from December estimates.

U.S. farmers planted a little more than 76.5 million acres of soybeans and harvested nearly 75.9 million, according to the report.

The USDA World Agricultural Supply and Demand Estimates (WASDE) Report released today indicates the extra bushels will be used. The government raised the soybean crush by 10 million bushels to 1.7 billion reflecting higher projected soybean meal exports.

Soybean exports were increased 20 million bushels to nearly 1.5 billion reflecting record shipments, mostly to China, during the first quarter of the marketing year and strong sales through December.

WASDE pegged soybean ending stocks at 150 million bushels, unchanged from last month. Kimberley, who farms in central Iowa, said that’s below trade estimates, but at a level the government considers to be a pipeline minimum.

“The ending stocks will probably be closer to 120 (million bushels) when you figure in the massive pace of soybean exports. They are on fire,” Kimberley said.

“We are exporting soybeans and soybean products like crazy. We have nearly exported more soybeans as of January than what USDA projected for the entire year,” he added. “Even if there are some cancelations later in the year, there will also be some additional sales.”

Kimberley said the increase in soybean yield from earlier projections should keep prices fairly stable since demand is strong.

The 2013/14 U.S. season-average farm price for soybeans narrowed by 25 cents on both ends of the range to $11.75 to $13.25 per bushel, according to USDA projections.

Global soybean production is estimated at 286.8 million tons, up 1.9 million on gains from the United States and Brazil, the WASDE Report said. Brazil’s soybean crop is estimated at a record 89 million tons.

“The prospect for continued strong prices should encourage increased soybean acres as plans are made for the 2014 crop,” said ISA President Brian Kemp, who farms near Sibley. “With the larger global production, the focus will likely shift to the South American harvest as final planting decisions are being made.”

Iowa State University grain economist Chad Hart foresees a 900,000-acre jump in soybean acres in Iowa to 10.2 million. A record 80 million acres are projected nationwide.

“Right now, beans are favored over corn in the market. … I think we see some major shifting,” Hart said.

To learn more about ISA, go to www.iasoybeans.com.

The Iowa Soybean Association develops policies and programs that help farmers expand profit opportunities while promoting environmentally sensitive production using the soybean checkoff and other resources. The Association is made up of 10,000 farmer members and is governed by an elected volunteer board of 21 farmers.

Website: http://www.iasoybeans.com

Published: January 10, 2014