US soybean production hits record level

In Germany, UFOP reports that US growing conditions for soybeans continue to be optimal. Fears of losses caused by drought are history now. The record area planted with soybeans could allow farmers to bring in the biggest ever soy harvest this autumn.

The USDA forecast pegs this year’s US soybean crop at around 110.5 million tonnes. This figure would exceed the 2014 record by 3.6 million tonnes. Favourable growing conditions, also in the development stage in August that is key in determining yield, have further improved prospects and led USDA to raise its recent crop forecast by 4.5 million tonnes. Since Brazil is also expecting a bumper crop of an estimated 103 million tonnes in the spring of 2017, global 2016/17 production could rise to unprecedented levels. According to Agrarmarkt Informations-Gesellschaft mbH (AMI), the strong downward pressure on US soybean prices could only be counteracted by very brisk demand. The latter is already on the horizon.

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