Soybean stocks continue to be supportive of prices
The USDA lowered its US soybean ending stocks projection in the latest supply and demand report. Mac Marshall with the United Soybean Board and the US Soybean Export Council says the potential seven year low for ending stocks has been supportive of prices.
“USDA took up their expected marketing year average price for whole beans from $10.40 a bushel to $10.55 a bushel,” he says. “For co-products, both the prices for meal and oil were revised up as well.”
He tells Brownfield the report was bullish for soybeans.
“Certainly, (the report offers) additional confirmation of tight balance sheets and this time it’s predicated on incremental demand growth on the domestic side rather than downward production revision as well,” he says. “We’re seeing a lot of strength there and I think that’s really exciting. I think additional validation of price support is really critical this time of year. Farmers are in the peak selling season, we’re in our peak export window, and decisions are starting to be made for planting in the spring of 2021.”
Marshall says he’ll be watching the next report in January for the final 2020 production totals for corn and soybeans and South American crop development adjustments.