U.S. oilseed production for 2009/10 is projected at 94.5 million tons, down 1.8 million from last month as lower soybean and cottonseed production are only partly offset by higher peanut production, according to today's World Agricultural Supply and Demand Estimates report.

Soybean yields are forecast at 41.7 bushels per acre, 0.9 bushels below last month's trend yield projection, but 2.1 bushels above last year's yield. The first survey-based forecast of U.S. soybean production is 3.2 billion bushels, 61 million below the July projection, but 240 million bushels above last year's crop. Soybean stocks are projected at 210 million bushels, down 40 million from July as reduced supplies are only partly offset by reduced crush and exports. Soybean crush is reduced 10 million bushels to 1.67 billion due to lower soybean meal exports. Soybean exports are reduced 10 million bushels to 1.265 billion. Lower U.S. soybean and soybean meal exports are offset by increased shipments from Argentina.

Soybean and product prices are all increased this month. The U.S. season-average soybean price for 2009/10 is projected at $8.40 to $10.40, up 10 cents on both ends of the range. Soybean meal prices are projected at $260 to $320 per short ton, up $5.00 on both ends of the range. Soybean oil prices are projected at 32 to 36 cents per pound, up one cent on both ends of the range.

Global oilseed production for 2009/10 is projected at 422.6 million tons, down 0.9 million tons from last month, but still record high. Soybean production for China is reduced 0.2 million tons to 15.4 million due to lower yield resulting from excessive moisture in the northeast. Offsetting increases are projected for soybean production in EU-27 and Ukraine. EU-27 rapeseed production is projected at a record 19.5 million tons, up 1.2 million due to better-than-expected yields reported during harvest, especially in Germany and Poland. Other changes include higher sunflower seed production in EU-27, lower peanut production for India, and a small reduction in cottonseed production for Brazil.

U.S. changes for 2008/09 include increased soybean crush and exports and an offsetting reduction in residual, leaving projected ending stocks unchanged at 110 million bushels. Crush is raised 5 million bushels to 1.66 billion reflecting a small increase in domestic soybean meal disappearance. Soybean exports are increased 5 million bushels to a record 1.265 billion.

SOURCE: Cattle Network.