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Allendale expecting smaller soybeanstocks

Ahead of the upcoming USDA supply and demand update, Allendale Inc. sees old crop soybean stocks continuing to tighten. The firm has old crop soybean stocksat 136 million bushels, down 29 million from last month because of strong export and crush demand. New crop stocks are pegged at 347 million bushels on projections for a bigger crop this year. Allendale's 2009/10 soybean production estimate is 3.182 billion bushels, compared to 2008/09's2.959 billion, with an average yield of 42.44 bushels per acre.

Corn's expected to be 30 million bushels smaller than a month ago at 1.670 billion bushels. New crop corn ending stocks are placed at 1.320 billion bushels on an anticipated increase in ethanol use demand.Allendale's 2009/10 corn production estimate is 12.179 billion bushels, compared to 2008/09's 12.101 billion, with an average yield of 156.95 bushels per acre.

Wheat ending stocks are seen up 1 million bushels from April at 697 million bushels and 2009/10 endingstocks are projected at 630 million bushels. Allendale's 2009/10 wheat production estimate is 2.133 billion bushels, compared to 2008/09's total of 2.500 billion. The total winter wheat crop is projected at 1.548 billion bushels, compared to 1.868 billion a year ago. Hard red winter isplaced at 915 bushels, compared to 2008/09's 1.035 billion, soft red winter is seen at 417 million bushels, compared to 614 million last year and white winter production is pegged at 216 million bushels, compared to 219 million for 2008/09.

USDA will also be issuingupdated global supply and demand estimates. Allendale projects Argentina's soybean crop at 34 million tons and has Brazil's soybean crop at 58 million tons.

The reports are due out Tuesday, May 12 at 7:30 AM Central.

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