Soybean futures climbed on Monday after the U.S. Department of Agriculture reduced its 2022/2023 forecasts on the commodity’s domestic production and yield per acre, setting prices up for their highest settlement since June. “There was a soybean surprise today, with the USDA lowering both a harvested and yield estimates,” Jake Hanley, managing director and senior portfolio strategist at Teucrium, told MarketWatch.
The USDA cuts its 2022/2023 U.S. soybean production forecast by 152 million bushels to 4.378 billion bushels, according to the monthly World Agricultural Supply and Demand Estimates report. It cited a lower harvested area and yield. U.S. harvested area was down 0.6 million bushels from the August forecast at 86.6 million acres, while U.S. soybean yield forecast was at 50.5 bushels per acre, down 1.4 bushels from the August forecast, the USDA report showed. “This is the third crop year in a row where U.S. soybean use is expected to exceed production,” said Hanley. The USDA forecasts domestic soybean use at 4.433 bullion bushels versus production of 4.378 billion bushels. “This means an even tighter balance sheet with the U.S. soybean stocks/use ratio back at the lowest level in a decade,” Hanley said. The most-active November soybeans contract