Indiana Farm Bureau’s Chief Economist Dr. Todd Davis is offering up his insights on the latest World Agricultural Supply and Demand Estimates (WASDE) report released earlier this afternoon by the U.S. Department of Agriculture (USDA).
“The August WASDE is telling us that we’re going to see a record soybean crop,” said Davis. “The USDA is also predicting corn and soybean inventory to increase to the largest level we’ve seen since 2019. Corn inventory should be up 12% from last year, and soybeans are expecting an 11% increase.”
According to Davis, although record corn and soybean yields should be impressive this year, prices are going to take a hit.
“Demand unfortunately won’t keep pace with record supply of soybeans this year,” added Davis. “The soybean market tends to have a very short time span for inventory because of South America’s contribution to the world market, and this large level of relative stocks is going to be a big hurdle for prices to try to overcome.”