In the most recent USDA crop report (September 12, 2008), the soybean yields were predicted to be 40 bushels per acre on 73 million acres, which would produce a 2008 soybean crop of 2.93 billion bushels. This is about 350 million bushels above last year’s values. With 2008 crop still in the field and late summer/early fall weather conditions can still greatly affect the final production figures, we should consider these values as “tentative” and plan to provide you better production data in the next Soymeal Newsletter. However, we can report that at this time it appears that the 2008 U.S. crop should be slightly larger than the 2007 crop.

USDA reports that world production and consumption of soybean meal has increased over the past three years, led by greater soybean processing in China and Argentina. U.S. production of soybean meal has been stable with domestic users consuming about eighty percent of the meal produced. Compare our use levels with use levels of three and fifty percent of the meal produced in Argentina and Brazil, respectively. Domestic use of soybean meal has been stable over the past three years in the U.S. and EU-27 countries, whereas soybean meal use in China is growing between 8-10 percent per year. This is another indication that world trade of soybean meal is dynamic and critical to U.S. soybean growers.
World Soybean meal supply and use (1)

(1) World imports and exports may not balance due to differences in local marketing years and to time lags between reported imports and exports. Therefore, world supply may not equal world use.

(2) Based on local marketing years adjusted to an October-September year. Values for 2007-08 are estimated and 2008-09 are projected by USDA economists.

Reference: USDA, Economic Research Service, World Agricultural Supply and Demand Estimates; WASDE-461, August 12, 2008.