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Soybean production up as exports increase

World production of soybeans is up this month, but the market, with solid gains for at least a couple of sessions this week, reacted to better-than-expected exports as well as warmer weather.  The global production jump for soybeans in the latest report was offset by some back-year changes, according to Seth Meyer, chairman of USDA’s World Agriculture Outlook Board.

“We actually increased exports for ’15/’16, we’ve seen some export strength,” said Meyer, in an interview provided by the USDA.  “Again, good demand in the world, and also reduced supplies out of South America, so we trimmed our carryout for 2015-2016 by 20 million bushels.”

That’s lowered 2016-2017 beginning stocks.  Another increase in exports this marketing year is expected to make a larger dent in production estimates, which will likely result in lower ending supplies compared to last year.

After a sharply higher market earlier in the week, soybean futures finished lower on Thursday.