Source: USDA

Aided by mild and dry conditions in October, U.S. soybean growers are forecast to set a new production record this year, according to the Crop Production report, released this week by the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS).

Soybean production is forecast at 3.38 billion bushels, up 0.5 percent from the previous record, set in 2009. Based on Oct. 1 conditions, soybean yield is expected to average 43.9 bushels per acre, down 0.2 percent from 2009. Growers are expected to harvest a record-high 76.8 million acres of soybeans, 0.6 percent up from last year's acreage.

Iowa Soybean Association (ISA) CEO Kirk Leeds commented on the day's reports. "This is clearly a demand-driven market for soybeans," Leeds said. "I am actually surprised that this seems to be news to many analysts. Global demand for soybeans, soybean meal and soybean oil remains incredibly strong. Even with a record crop, projected carryover for soybeans is going to be extremely tight. With the recent action by the Federal Reserve to pump more dollars into the system, the resulting lower value of the U.S. dollar will support even more exports of soybeans and other commodities. The market is going to battle all winter to try to gain more soybean acres."

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