Analysts are expecting a big boost to this year’s soybean production with hundreds of millions more bushels, but they warn it is going to be a tough market for those exports.
The first forecast for the crop is up about 4.5 billion bushels, a five percent increase over last season. Soybean exports are projected to be down two percent. Outlook Board Chair Mark Jekanowski says it is all about timing.
“We’re looking at a pretty large increase in global soybean supplies and many of those will be on the market right at the same time when the U.S. soybean export campaign is kicking off.”
Jekanowski says U.S. soybean stocks are expected to grow during the next marketing year by about 50 percent, leading to a drop in prices by nearly 15 percent.
