The August U.S. Department of Agriculture crop report has been updated with major changes. Weather and market forces were responsible for farmers planting significantly more corn and fewer acres soybeans. Corn acres were increased by about twenty percent over the 2006 acres, resulting in about fifteen percent fewer acres of soybeans. Growers in Illinois and Iowa showed the largest reduction in soybean acres compared to last year by reducing soybean plantings by 1.75 and 1.35 million acres, respectively. Large declines were also seen across the Corn Belt and Great Plains with planted acreages down more than a million acres from last year in Indiana, Minnesota and Nebraska. Small increases in soybean plantings in the Southeast and Northeast were noted, but relatively insignificant compared to the large reductions in the Midwest.

With soybean yields still to be determined by late summer temperatures, rainfall and disease/pest induced plant stresses; the final size of the 2007 soybean crop is still unknown, but anticipated to be about fifteen percent smaller than the 2006 crop. It should be noted that with an ideal late summer growing conditions and average soybean yields on the trend lines, soybean supplies could be increased.

The good news for the feed formulator is that the carryover of 2006 soybean stocks, together with the 2007 soybean production, will provide ample soybean for the domestic crush. In fact, the estimated soybean crush this crop year is slightly larger than last year. USDA is anticipating that the larger soybean crush will result in greater domestic use and exports of soybean meal.