USDA has slashed its U.S. soybean ending stocks estimate to 190 million bushels, a seven-year low.
Market analyst Jeff Peterson with Heartland Farm Partners says he was surprised the reduction came strictly from the production side.
“We actually thought it was going to come from the demand side. We really didn’t think we would see much adjustment on the yield, or the production side,” Peterson says. “So to get us down here already, into some tight areas, with making any adjustments on demand—that could get interesting down the road.”
Peterson says actual ending stocks could be even tighter than USDA is estimating.
