IOWA SOYBEAN ASSOCIATION RESPONDS TO USDA CROP REPORT
ANKENY,
Iowa - According to today’s United States Department of Agriculture (USDA) crop report, production is expected to be up from last year.
Soybean production is now projected at 3.250 billion bushels. That is only slightly higher than the September estimate of 3.245 billion bushels, but up 9.5 percent from last year’s crop. For Iowa, estimated harvested acres dropped while yield remained the same.
According to Iowa Soybean Association (ISA) CEO Kirk Leeds, “This report does not contain any big surprises for Iowa. The market has been anticipating a large U.S. crop, but it seems the market also believes long-term demand trends for soybean meal and soybean oil will continue to move upward. At the same time, there is uncertainty about the upcoming South American crop.”
Delbert Christensen, ISA president and a soybean grower from near Audubon, recently represented the association in signing a trade agreement with a Taiwanese delegation, in which they declared their intention to purchase 110-118 million bushels of U.S. soybeans in 2010 and 2011.
In addition, groups from China, Indonesia, Japan, the Philippines, Thailand and Vietnam have also traveled through the state in recent weeks, evaluating the crop and expressing enthusiasm about purchasing U.S. soybeans and soybean meal.
ISA Director of Market Development Grant Kimberley reports that this is the third consecutive year of record soybean exports and the sixth record year in the last decade. In 1991, exports accounted for 40 percent of U.S. soy production; in 2008, 58 percent; and in 2009, 54 percent.
“Obviously, in spite of the downturn in the world economy, global demand for soybeans remains strong,” said Christensen. “A good supply means we will be able to meet our customers’ demands, especially considering South America’s current lack of supply.”
Christensen added a note of caution about the anticipated crop. “Meanwhile, weather is still a factor,” he said. “Much of the state has been having just enough rain to keep combines out of the fields. If delays last too long, we run a risk of harvest loss.”
Earlier this week, the USDA Crops and Weather report showed that only 20 percent of soybeans had been harvested, well behind the five-year average.
Soybean production is now projected at 3.250 billion bushels. That is only slightly higher than the September estimate of 3.245 billion bushels, but up 9.5 percent from last year’s crop. For Iowa, estimated harvested acres dropped while yield remained the same.
According to Iowa Soybean Association (ISA) CEO Kirk Leeds, “This report does not contain any big surprises for Iowa. The market has been anticipating a large U.S. crop, but it seems the market also believes long-term demand trends for soybean meal and soybean oil will continue to move upward. At the same time, there is uncertainty about the upcoming South American crop.”
Delbert Christensen, ISA president and a soybean grower from near Audubon, recently represented the association in signing a trade agreement with a Taiwanese delegation, in which they declared their intention to purchase 110-118 million bushels of U.S. soybeans in 2010 and 2011.
In addition, groups from China, Indonesia, Japan, the Philippines, Thailand and Vietnam have also traveled through the state in recent weeks, evaluating the crop and expressing enthusiasm about purchasing U.S. soybeans and soybean meal.
ISA Director of Market Development Grant Kimberley reports that this is the third consecutive year of record soybean exports and the sixth record year in the last decade. In 1991, exports accounted for 40 percent of U.S. soy production; in 2008, 58 percent; and in 2009, 54 percent.
“Obviously, in spite of the downturn in the world economy, global demand for soybeans remains strong,” said Christensen. “A good supply means we will be able to meet our customers’ demands, especially considering South America’s current lack of supply.”
Christensen added a note of caution about the anticipated crop. “Meanwhile, weather is still a factor,” he said. “Much of the state has been having just enough rain to keep combines out of the fields. If delays last too long, we run a risk of harvest loss.”
Earlier this week, the USDA Crops and Weather report showed that only 20 percent of soybeans had been harvested, well behind the five-year average.
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Funded by the soybean checkoff
Funded by the soybean checkoff
