U.S soybeans ending stock raised on higher production from hike in yields: USDA October | US soybeans ending stock

U.S soybeans production for 2021-22 was raised to 4.448 billion bushels, up 74 million from September report underpinned by higher yields—USDA October. The rise was expected but the scale of the rise was much higher than what the market was looking for as a result soybeans contract on CBOT fell below US$12/bushels to trade to the lowest point since December 2020 closing at US$12.10/bushels, down 295/8 points from yesterday. Soybean oil closed 166 points down on the most active contract closing below US$60 cents/pound mark to 58.58 cents or down 2.74% from the previous day close spilling over to drag lower palm opening. Meal was also lower at market close.

Soybeans yield was upgraded to 51.50-bushel per-acre (bpa.) from the September forecast of 50.60 bpa while the harvested area was left unchanged at 86.40 million acres but higher than the market expectation of 86.349 million acres. The rise in production was higher than market expectation which pegged yields at 51.10. Harvested area was also expected at 86.349 million acres. Higher production from a hike in yields while leaving total use little changed boosted new crop ending stock projection to 320 million bushels from 185 million in September report.

Other noticeable change was the reduction in Argentina soybean crop size by 1 million tons to 52 million tons on the lower harvested area. Canola production for Canada was lowered by 1.0 million tons to 13.0 million within expectation.