WINNIPEG (MarketsFarm) – In the oil crops outlook, issued Nov. 13, the United States Department of Agriculture (USDA) said the 2019 soybean harvest will end the latest in 10 years.
As of Nov. 10, the overall soybean harvest stood at 85 percent complete, according the USDA’s weekly crop progress report. The pace was two points behind this time last year and seven off of the five-year average.
The oil crops outlook cited delays to spring planting, a cool summer and wet conditions during the fall as the main reasons for this year’s harvest being so late. Furthermore, snow across much of the Northern Plains made the harvest more difficult. Added to that, the supply of propane hasn’t been able to keep up with the demand. Farmers wanting propane for their grain dryers are forced to contend with the home-heating demand. In turn, that has raised propane prices, which have run up farmers’ expenses.
While less production has been forecast in North Dakota, Michigan and several southeastern states, that’s been countered somewhat by gains in Minnesota, Indiana, Kansas and Nebraska. However, the USDA lowered its projection for soybean production to 3.55 billion bushels in its November supply and demand report. Although down slightly from its October estimate, the USDA’s forecast is 20 percent less than last year’s harvest.
Despite that decline, the USDA also projected an increase in ending stocks to 475 million bushels. The outlook noted the domestic crush to slip by 15 million bushels to now 2.105 billion. As well, soymeal exports have dropped by 14 percent from this time last year.