Ankeny, Iowa, USA
November 9, 2010

According to today’s United States Department of Agriculture (USDA) crop report, soybean production is estimated at a record 3.375 billion bushels, down 1 percent from the October estimate of 3.408 billion bushels but up slightly from last year. The average yield for the U.S. is estimated at 43.9 bushels per acre, compared to 44.4 bushels estimated in October. The estimated yield is down 0.1 bushel from last year.

For Iowa, soybean production is estimated at 512.2 million bushels. Yield estimates for Iowa are for an average of 52 bushels per acre; that is unchanged from October.

USDA estimates for corn production are for a total of 12.540 billion bushels, also a decrease of 1 percent compared to12.664 billion bushels estimated in October and down 4 percent from last year’s record production. U.S. average yield is estimated 154.3 bushels per acre, down from an October estimate of 155.8 bushels per acre.

For Iowa, total corn production is estimated at 2.188 billion bushels, with an average expected yield of 167 bushels per acre, down 2 bushels from the 169 bushels estimated in October.

Meanwhile, the bigger news seems to be that estimates of soybean supply and distribution show exports increased by 50 million bushels and ending stocks cut by 80 million bushels. While Brazil’s estimated soybean production is increased by 0.5 million metric tons and Argentina’s estimated production is increased by 2 million metric tons, China’s forecasted soybean imports have been increased by 2 million metric tons to 57 million metric tons, a one-year increase of 13.2 percent.

Iowa Soybean Association (ISA) CEO Kirk Leeds commented on the day's reports. “This is clearly a demand-driven market for soybeans," Leeds said. "I am actually surprised that this seems to be news to many analysts. Global demand for soybeans, soybean meal and soybean oil remains incredibly strong. Even with a record crop, projected carryover for soybeans is going to be extremely tight. With the recent action by the Federal Reserve to pump more dollars into the system, the resulting lower value of the U.S. dollar will support even more exports of soybeans and other commodities. The market is going to battle all winter to try to gain more soybean acres.

"Thankfully, Iowa and the U.S. have produced a record crop this year and have done so while producing a crop that is higher in protein and oil than last year’s crop. We are in a terrific position to take advantage of the strong demand for high quality soybeans.”

Website: http://www.iasoybeans.com

Published: November 9, 2010