Record soybean crop predicted by INFB

By Andi Anderson

Indiana Farm Bureau’s Chief Economist, Dr. Todd Davis, provided valuable insights on the latest World Agricultural Supply and Demand Estimates (WASDE) report, released by the U.S. Department of Agriculture (USDA) this afternoon.

According to Davis, the August WASDE report points to a record-setting soybean crop and significant increases in both corn and soybean inventories.

“The August WASDE is telling us that we’re going to see a record soybean crop,” stated Dr. Davis. He emphasized that the USDA is also forecasting the largest corn and soybean inventory levels since 2019.

Corn inventory is projected to increase by 12 percent compared to last year, while soybean inventory is expected to see an 11 percent rise.

While the record yields for corn and soybeans are anticipated to be impressive, Davis warned that prices are likely to face downward pressure. “Demand, unfortunately, won’t keep pace with the record supply of soybeans this year,” he added.

Davis highlighted that the soybean market tends to have a short window for managing inventory, largely due to South America's significant contribution to the global market. This large level of relative stocks will present a substantial challenge for prices, making it difficult for the market to maintain strong pricing.

The insights provided by Dr. Davis underscore the importance of monitoring both production and demand trends as the agricultural sector navigates the implications of this year’s abundant crop yields.

With record supplies on the horizon, farmers and market analysts alike will be closely watching how these factors influence market prices and the overall economic landscape in the coming months.

Photo Credit: indiana-farm-bureau