Soybean growers will be happy to hear reports show positive demand for the U.S. crop.
The U.S. Department of Agriculture released two important market reports: the September World Agriculture Supply and Demand Estimates, and the latest U.S. Export Sales Report.
This newly available data reflects production challenges in the United States and improved demand for U.S. soy.
Newly appointed vice president of market intelligence for United Soybean Board and Export Council, Mac Marshall, says that the reports indicated great movement in the first week of the new marketing year.
According to Marshall, “Combined exports for new crop and old crop for this last week were about 1.7 million metric tons, which is the highest figure we’ve seen in three years. In addition to the export sales report we had the September WASDE, we had USDA take down its yield figure from a record 53.3 bushels per acre to 51.9, still of course very, very high, but definitely incorporating some of the production challenges that have been encountered over the past month. The impact that that’s had is it’s brought down the crop size estimate for the U.S. soy crop by just over 100 million bushels.”
USDA also noted increased exports in the 2019-2020 marketing year, reflecting improving demand. As the soybean harvest is beginning now, Marshall says that the renewed export demand is a positive sign for the new 2020-2021 marketing year.
“As we have this really aggressive sales pace, where we are in September here when we have the yield revisions and USDA’s updates on the crop size, it’s usually a pretty good indicator of where the crop is going got end up at final count once everything is off the field and in the bin,” Marshall states. “So, still looking at a very large crop overall, but I think, as we’re having this renewed demand, particularly in overseas markets, that’s a nice sign to point to for this current marketing year.”
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