Contact:
Colleen Settle
317-692-7822 (office)
317-242-8907 (cell)
csettle@infb.org

(Indianapolis) – Oct.11, 2024 – The latest World Agricultural Supply and Demand Estimates (WASDE) report released earlier this afternoon by the U.S. Department of Agriculture (USDA) projects record soybean crops for the U.S. and in the Hoosier state at 4.58 billion and 346.8 million bushels, respectively.

USDA’s October report reduced Indiana’s corn and soybean average yields by eight and three bushels per acre to 202 and 60 bushels per acre, respectively, since the last report.

“The report also reduced corn ending stocks and kept soybeans stocks unchanged from September. This is a positive step as the market was concerned about further increases to ending stocks,” explained Dr. Todd Davis, INFB chief economist. “However, there is still a large amount of inventory looming over farmers’ heads.”

According to Dr. Davis, corn stocks are projected to increase nationally by 640 million bushels from the 2022 crop. If realized, the 2024 corn ending stocks would be the largest since the 2019 marketing year relative to demand. The larger corn inventory will limit price potential. Similarly, USDA projects the soybean ending stock-to-use ratio at 12.5%, which is also the largest relative soybean inventory to demand since 2019.

“This large relative inventory will be a headwind for higher soybean prices without an increase in domestic demand or the threat of reduced production from South America,” noted Dr. Davis. “There could be some opportunities if any demand heats up before the holiday season as well as the impact of South American weather.”

Dr. Davis suggests that as farmers update their crop enterprise and cash flow budgets, it may be a good time to assess profitability expectations for 2024 and make plans for managing cash flow problems, as profit margins continue to be squeezed.

Read Dr. Davis’s full insights here.

The WASDE report is released monthly and provides annual forecasts for supply and use of U.S. and world wheat, rice, coarse grains, oilseeds and cotton. For more information about the report process and data, visit the USDA’s publications page.

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About Indiana Farm Bureau: For more than 100 years, Indiana Farm Bureau (INFB) has protected and enhanced the future of agriculture and our communities. As the state’s largest general farm organization, INFB works diligently to cultivate a thriving agricultural ecosystem to strengthen the viability of Indiana agriculture. Learn more at INFB.org.