By Todd Hubbs, Department of Agricultural and Consumer Economics University of Illinois
The USDA released the first projections for U.S. corn and soybean supply and demand in the 2020-21 marketing year on May 12. The forecasts for soybeans showed higher ending stocks this marketing year with a substantial decrease in the next marketing year’s ending stocks. While the prospects for this year’s crop come to the forefront, the consumption projections reflect the potential market size and merit consideration.
Current marketing year ending stocks increased to 580 million bushels due to a 100 million bushel drop in soybean exports. Total consumption for the 2019-20 marketing year is forecast at 3.901 billion bushels, down 70 million bushels from 2018-19. The initial forecast of soybean use for the 2020-21 marketing year came in at 4.315 billion bushels. Driven by an expectation of exports at 2.05 billion bushels, consumption near this level last occurred in 2017-18 before the onset of the trade war.… Continue readingRead More »