The Iowa Soybean Association’s continued commitment to building domestic and international demand for soy will pay dividends as farmers prepare to harvest a projected 502 million bushels of soybeans in Iowa.
The U.S. Department of Agriculture’s estimate released today is based on 10 million acres of planted soybeans and an average per-acre yield of 50 bushels in Iowa.
Acres planted to soybeans in Iowa are up nearly 750,000 from 2013 while total soybean production is estimated to climb by 91 million bushels from last year’s actual 411 million. The yield estimate is an increase of 5.5 bushels over last year and on par with the 2011 and 2010 the average of 51 bushels per acre.
“Increased acres and minimal insect and disease issues up to this point, coupled with timely rains make prospects for excellent yields likely,” said Brian Kemp, ISA president and farmer from Sibley. “While there are areas of the state that are in need of rain to finish the crop, overall the prospect of an adequate supply of soybeans for both domestic and international buyers appears to be promising.”
ISA CEO Kirk Leeds says the report’s continued projection of record production combined with softening prices will lead to increased consumption around the world.
“Our recent trip to China was encouraging as we anticipate record exports for the next several years,” Leeds said. “Given the robust global demand for vegetable protein and vegetable oil, soybeans are well positioned to meet this demand with the large soybean crop this year.”
Global oilseed production—including soybeans, rapeseed, cottonseed, sunflower and peanuts—is down from last month. India will have lower than expected production due to monsoons, and the U.S. soybean crop is ready to fill in the gap.
Nationally, a record 3.82 billion bushels of soybeans are expected which is up 16 percent from last year. Average expected yield is a record 45.4 bushels per acre, 2.1 bushels above 2013.
According to the World Agricultural Supply and Demand Estimates (WASDE) report, season-average soybean prices for the 2014/15 marketing year are forecast from $9.35 to $11.35 per bushel, down 15 cents on both ends.
A USDA crop progress report released earlier this week indicated that 75 percent of the Iowa soybean crop was putting on pods and rated in good to excellent condition.
“Beans don’t like wet feet and historically we have not seen an above average soybean yield in years when we received heavy perception in June like we did this year,” said Grant Kimberley, ISA market development director. “The real test will be this month as beans are made in August and conditions have been cool.”