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U.S. Grain and Oilseed Situation and Outlook. Nick Piggott North Carolina State University South Carolina Ag Expo February 8th, 2001. Southern Region Soybean Production. Projected Supply/Demand for U.S. Soybeans 2000-01. Record Soybean Demand in 2000-01. Record crush of 1.6 billion bushels
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U.S. Grain and Oilseed Situation and Outlook Nick Piggott North Carolina State University South Carolina Ag Expo February 8th, 2001
Record Soybean Demand in 2000-01 • Record crush of 1.6 billion bushels • 1.8 % in meal use from 99/00 • 2.7 % domestically from 99/00 • 1.7 % exports from 99/00 • 2.4 % in oil use from 99/00 • 2.4 % domestically from 99/00 • 1.7 % exports from 99/00 • Record exports of almost 1 billion bushels • improved exports to China offsetting declines from EU • Still expecting to add 30 million bushels to carry-out in 00-01.
U.S. Soybean Price Prospects • Market currently fairly bearish with latest production and ending stocks estimate more than expected • Exports for 00-01 above last year at the same time
U.S. Soybean Price Prospects….. • How many acres will the U.S. plant? Best guess is another 2.4 mill. acres • 75.1 acres @ 38.4 bu./ acre = 2,883 mill. bushel (113 more than 00-01) • Sth American crop bigger in 00-01 with world ending stocks for 00-01 slightly less than 99/00 (at 23.18 MMT)
U.S. Soybean Price Prospects….. • Futures now trading below harvest low with S-Mar 01 = $4.70 and S-Nov 01 = $4.85 • Forward offers for new crop below loan rate thus no incentive to forward contract (SC new crop bids $4.41) • Look for concerns of production shortfalls in Sth America and BSE in EU to stimulate a price rally into planting • limited opportunities that won’t be sustained for long • need firm price targets in mind and be prepared to act • Without any production shortfalls in U.S or Sth America: U.S farm price could be in $4.40 range for 2001-02