The December World Agricultural Supply and Demand Estimates (WASDE) report from USDA reveals a strong forecast for U.S. soybeans. Mac Marshall, United Soybean Board vice president of market intelligence, explained the details.
?Now it being December, it?s not a month in which you typically see a lot of movement and noise,? Marshall said. ?We know how big the crop is from the last couple reports in the U.S. So, no changes really on the whole bean side of the balance sheet domestically. The market was expecting maybe some slight uptick in that carryout number, that was maintained at 220 million bushels, obviously a key metric to look at for this coming year, as it?s got major implications for price.?
Marshall said the South American forecast for soy production has maintained since the previous month, which will continue to be watched in the coming months.
?Maintain production for both Brazil and Argentina, Argentina 49.5 million metric tons expected, and Brazil maintained at what would be a record 152 million metric tons,? Marshall said. ?Now, of course, it?s still early in the season. We have seen some planting delays, suboptimal rainfall in Mato Grasso and major parts of the Brazil growing regions. So, this will be something to watch in the coming months.?
Marshall added that, despite a slight decline in soybean oil utilization in biofuels, the sector continues to see growth.
?And we did see a slight cut to that, but the numbers are still reflecting industry growth, which is consistent with what a lot of private-sector players who are making waves of investment both in the renewable diesel expansion in the West Coast and beyond, as well as companies investing to expand crushing capabilities throughout the Midwest and northern Plains,? Marshall said.
For more information, visit unitedsoybean.org.
