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The season's ending soybean stock was forecast by the United States Department of Agriculture (USDA) at 3.81 million tons, above the 3.59 million tons expected by analysts, according to TF Agroeconomic. As for demand, the USDA forecast exports in 2021/22 of 2.075 billion bushels (56.48 million tons) and crushing of 2.225 billion bushels (60.56 million tons).
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“For the 2020/21 harvest, the USDA maintained its ending stock forecast at 120 million bushels (3.27 million tons). The market expected a reduction to 118 million bushels (3.21 million tons). However, the USDA left demand estimates stable, with crushing at 2.190 billion bushels (59.61 million tons), and exports, at 2.280 billion bushels (62.06 million tons), despite firm demand in recent months”, comments the consultancy.
In the report, the USDA also projected strong growth in the amount of U.S. soybean oil that will be consumed by the biofuels industry. “The projection is that 12 billion pounds (5.44 million tons) of soybean oil will be used for biofuel in 2021/22, which represents an increase from 9.5 billion pounds (4, 31 million tons) in 2020/21. US production is also expected to increase, but only by 430 million pounds (195.04 thousand tons), to 25.945 billion pounds (11.768 million tons). This deficit helped support soybean futures at CBOT after the release of the report”, he concludes.
By: Leonardo Gottems | agrolink
