Soy Stays Strong in November WASDE
USDA’s November World Agricultural Supply and Demand Estimates report offered few changes for soybean growers, with slight increases in yields and crop size this month. Mac Marshall, United Soybean Board vice president of market intelligence, explains.
“It’s the calendar of the year. It’s November — you don’t typically see a lot of updates at this point. We had a lot of reconciliation last month. But we did have an adjustment to the yield figure in the U.S. USDA took it up by almost half a bushel an acre to 50.2 bushels per acre. We’re now looking at a crop size about 4.35 billion bushels, fourth largest on record. And it balanced that out by putting a little bit more into the crush and then also some build in inventory. Both of that, I think, good news collectively.”
He says pricing positions are still strong for soybean farmers.
“We’re still in an overall good pricing position for farmers. Now, of course, there’s always the specter of input costs that are eroding margins. I think that that’s really been a prevailing trend over the last year and a half. And then of course, we have all the transportation snarls, which are eroding basis. So, even as we’re seeing favorable revenue side pricing here, bean prices well over $14 and looking strong across the futures curve, you’ve got a lot of factors eating into that on the farmer revenue side.”
Marshall says looking ahead, the South American crop will be one to watch in the coming months.
“We had a slight reduction in the expectations for the Argentine crop a little earlier I think than I would expect. That was taken down from 51 million metric tons to 49 and a half. That’ll definitely bear monitoring in the months ahead.”
Keep up with the latest news from the United Soybean Board at unitedsoybean.org and Wednesday mornings at 10 a.m. Eastern on RFD-TV.