By Jessica Domel
Multimedia Reporter
A higher commodity price prompted more American farmers to plant soybeans this year. According to a new report from the U.S. Department of Agriculture (USDA), U.S. production for oilseeds for 2017-18 is projected to be 3.9 million tons higher due to an increase in soybean production.
Oilseed production in the U.S. is forecast at 130.9 million tons, according to USDA’s World Agricultural Supply and Demand Estimates (WASDE) report.
U.S. soybean production
Increased yields have pushed American soybean production up 121 million bushels, according to the report. American production is forecast at 4,381 billion bushels, up 2 percent.
Harvest area for soybeans is forecast at 88.7 million acres, which could be a record, according to USDA’s National Agricultural Statistics Service (NASS).
The planted area estimate, which is also forecast to be a record high, is projected at 89.5 million acres.
Yield is forecast at 49.4 bushels per acre, which is up 1.4 bushels over the last month. Yield estimates remain below those achieved in 2016.
U.S. soybean supply for 2017-18 is projected at 4,777 million bushels. That’s up 2 percent over last month.
Ending stocks are projected at 475 million bushels, which is 15 million bushels higher than last month’s estimates.
The season average on-farm price is $8.45-$10.15 per bushel, which is down 10 cents at the midpoint.
Soybean meal price is $295-$335 per short ton, which is down at the midpoint. Soybean oil is forecast at 31-35 cents per pound, up a cent at both ends of the range.
Average cost of production for soybeans is forecast at $8.60 a bushel.
Texas soybean production
In its latest crop report, NASS forecasts soybean production in Texas at 5.25 million bushels. That’s 755,000 fewer bushels than last year.
NASS estimates yields in Texas up four bushels to 35 bushels an acre.
U.S. demand
The U.S. is exporting more of its soybeans, according to USDA. Exports are up 50 million bushels to 2,150 million bushels with outstanding export sales and shipments through July.
Crush is reduced on decreased global demand.
Ending stocks for the U.S. are forecast at 370 million bushels, which is down 40 million from last month, according to USDA.
Global demand
USDA forecasts global oilseed production at 576.6 million tons, which is up 2.8 million. The increase is largely attributed to a 2.3 million ton increase in soybean production.
A larger crop in the U.S. is partially offset with a 1.5 million reduction in India’s crop.
Dryness in Western Canada and too much rain in Eastern Canada have reduced Canada’s soybean and canola production.
Also factoring into the global equation is an increase in sunflower seed production in Russia, more rapeseed production in the European Union and lower peanut production in India.
Soybean exports worldwide for 2017-18 are forecast up 1.5 million tons. Greater exports in the U.S. are partially offset by a reduction in shipments from Argentina.
USDA forecasts 2017-18 soybean ending stocks up 4.3 million tons to 97.8 million tons due to higher beginning stocks based on lower crush and exports for Argentina combined with higher production elsewhere in the world.
The next WASDE report will be released Sept. 12 at https://www.usda.gov/oce/commodity/wasde/.