USDA Oil Crops Outlook: Soybean Sector Prices Are Heating Up

Based on strong margins and a record early season crush, the U.S. Department of Agriculture has boosted its forecast of the 2020/21 soybean crush this month by 15 million bushels to 2.195 billion in its Dec. 14 Oil Crops Outlook.

Given no change in the export forecast for soybeans, the expected U.S. stocks carryout for 2020/21 is trimmed to 175 million bushels from 190 million last month.

A tighter inventory outlook is seen strengthening the U.S. season-average farm price for soybeans by 15 cents to $10.55 per bushel.

USDA also increases its forecast of the 2020/21 average soybean meal price by $15 per ton this month to $370 while the average soybean oil price is seen 1.5 cents higher to 36 cents per pound.

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