Soybean Crushing Forecast Higher

The June World Agriculture Supply and Demand Estimates (WASDE) released by the USDA expects the U.S. corn outlook to be little changed from last month, with fractional increases to beginning and ending stocks. Beginning stocks are raised, as a 45-million-bushel reduction in estimated production for 2019/20 is largely offset by a 50-million-bushel reduction in projected corn used for ethanol. Corn used for ethanol is lowered reflecting a slower-than-expected rebound in ethanol production as indicated by Energy Information Administration data during the month of May and into early June. For 2020/21, with supply up slightly and no changes to projected use, ending stocks are 5 million bushels higher at 3.3 billion bushels. The season-average farm price is unchanged at $3.20 per bushel.

This month’s U.S. soybean supply and use projections for 2020/21 include higher beginning stocks,…