Soybean futures poised to finish at another 4-year high as USDA cuts soybean production forecast

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Soybean prices climbed Tuesday, on track for the highest settlement since June 2016, after the U.S. Department of Agriculture lowered its forecasts for U.S. production and ending stocks for the 2020/2021 marketing year. “Soybean ending stocks in the U.S. are down 64% from last year and 79% from two years ago,” while domestic usage for soybeans is projected at annual record highs, said Sal Gilbertie, president and chief investment officer at Teucrium Trading. “Supplies of grains are tightening.” The USDA said U.S. soybean production is forecast at 4.17 billion bushels, down 98 million from the previous forecast due to lower crop yields. Soybean ending stocks, meanwhile, are forecast at 190 million bushels, down 100 million from last month’s forecast. If realized, that would be the lowest ending stocks level in the past seven years, the USDA said. January soybeans traded at $11.42 1/2 a bushel, up 32 cents, or 2.9%. A settlement around the current level would be the highest for a most-active contract since June 30, 2016, FactSet data show. Prices on Monday also settled at a more than four-year high.
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