At 10 a.m. CST Friday soybean and canola futures are trading higher after the United States Department of Agriculture lowered its forecast soybean production in Brazil and Argentina.
But the momentum the news generated is lessened by the fact that USDA does not see the cuts to South American production generating extra business for the U.S.
U.S. soybean exports were left unchanged at slightly more than three billion bushels.
U.S. 2011-12 soybean ending stocks were left unchanged at 275 million bu., slightly higher than the average trade forecast.
Global oilseed production for 2011-12 is projected at 445.7 million tonnes, down 6.7 million from last month, the USDA said.
Brazil soybean production is forecast at 68.5 million tonnes, down 3.5 million from last month due to lower projected yields resulting from hot, dry conditions in the southern states.
Argentina soybean production is reduced 1.5 million tonnes to 46.5 million with drought earlier this season taking its toll.
Paraguay soybean production is projected at 5 million tonnes, down 1.4 million from last month and 34 percent below early season expectations.
Other changes include lower rapeseed, peanut, and sunflower seed production for India, increased cottonseed production for Brazil, and increased sunflower seed production for Argentina.
Global oilseed ending stocks are projected at 67.8 million tons, down 3.4 million from last month. Reduced soybean stocks in Brazil and Argentina account for most of the change.
The USDA report was friendly to wheat with end of year U.S. wheat stocks reduced to 825 million bushels, versus pre report expectations for 836 million bu.
Generally, stock markets are upbeat today on better than expected job creation in the United States and settlement of the Greek debt swap issue.
However, job creation in Canada was worse than expected.
