A quarterly report by the United States Department of Agriculture (USDA) showing higher than expected US soyabean ending stocks has hit the commodity’s price, the Union for the Promotion of Oil and Protein Plants (UFOP) reported on 14 October.
According to analysis by Agrarmarkt Informations-Gesellschaft, the USA had just under 7M tonnes of soyabeans in storage on 1 September 2021, the report said. This was less than at the same time the previous year.
However, as market participants had only expected stocks of 6.4M tonnes, the new estimate put pressure on soyabean prices, according to the UFOP report.
Following the new outlook, the USDA lowered its forecast for demand for fodder production, the report said.
Shipping delays were also to be expected due to port facilities in the Gulf of Mexico suffering damage from Hurricane Ida in late August, according to the report.
Around 73% of soyabean stocks (5.1M tonnes) were stored off farm, the report said, as in the previous year. However, this was only around half the previous year’s amount in external storage (10.4M tonnes).
By the end of the 2020/21 season, producers had sold 98.4% of the 112.5M tonnes harvested in 2020, which was significantly more than the 96.7M tonnes harvested the previous year, the report said.
In early September, 4% of the 2019 harvest was still in storage on the farms, according to the report.