Ending stocks for U.S. soybean inventory fell to 2013 lows after the World Agricultural Supply and Demand Estimates report was released on Tuesday. (Photo: Joseph L. Murphy/Iowa Soybean Association)
November WASDE squeezes soybean stocks
November 12, 2020 | Bethany Baratta
By Bethany Baratta, ISA senior writer
Soybean prices rallied this week after the U.S. Department of Agriculture (USDA) tightened soybean stocks to a level not seen in 7 years.
Markets closed on the Chicago Board of Trade at $11.38 per bushel on Tuesday, and $11.43 per bushel on Wednesday, Nov. 11.
In its World Agricultural Supply and Demand Estimates (WASDE) report, released Tuesday, the USDA reduced U.S. soybean yield from 51.9 bushels per acre to 50.7 bushels per acre and shaved off 98 million bushels in 2020/21 soybean supplies, to 4.7 billion bushels.
As a result, ending stocks were also pulled back 100 million bushels to 190 million bushels, the lowest amount of soybean stocks in U.S. inventory since 2013.
The USDA raised the average farm price for soybeans 60 cents to $10.40 per bushel, the highest price for soybeans since 2014.
For more insight on the report, go here
to watch Mac Marshall, vice president of market intelligence for the U.S. Soybean Export Council and the United Soybean Board, Randy Mittelstaedt of RJO Market Insights for R. J. O’Brien and USSEC CEO Jim Sutter to break down the report. (Must register to access the recording.)