The august crop production report was somewhat of a game changer. There were surprises to the market. The biggest surprise to many was the increase in yield from the july report. The usda estimated the yield at 49.4 bu to the acre. Given the increase the new crop ending stocks swell to 475 million bu. In addition, the global carryover is projected at 97.78 mil tns. This really is getting big. Now the demand base is solid. However, the is a lot of cushion without any crop related issues. There are a couple things to watch. There is still some uncertainty in the Canadian canola crop. Also, the US is expected to protect domestic vegoils with a dumping tariff on imported biodiesel. That could be friendly bean oil. Perhaps oil share. There is a bit more growing season concern . The western belt still needs some moisture. However, without any major bouts of stress in the coming weeks, the world looks very amply supplied with soy
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