Soybean acreage expansion, better yields should swell stocks
USDA’s Acreage report indicated that farmers would plant a record 77.7 million acres of soybeans this year. Due to a higher estimate of harvested area, soybean yield for 2013/14 is forecast up 30 million bushels this month to 3.42 billion. The additional supplies are expected to boost season-ending stocks to 295 million bushels compared to last month’s forecast of 265 million.
USDA projects world rapeseed production for 2013/14 at a record 64.8 million metric tons. This year’s Canadian production of canola is forecast at a record 15 million tons, based a revised, increased area. Also, a higher area estimate raised the forecast of Australia’s canola production by 400,000 tons this month to 3.2 million. Yet, lower exportable supplies from Australia and Canada and steady competition with European crushers for imports will likely constrain China’s rapeseed trade in 2013/14 to 2.5 million tons.