The U.S. soybean stockpile is expected to shrivel to its smallest size in 10 years – less than a two-week supply – by late summer ahead of a record-large harvest that will saturate supplies and sharply pull down prices for the oilseed, according to trade expectations for the crop report today. USDA will release the monthly Crop Production and companion WASDE reports at noon ET. Large exports and heavy domestic usage are draining soybean stocks despite imports that would be four times larger than usual.
Traders also expect USDA to lower slightly its forecast for the winter wheat crop, now entering harvest, due to intense drought in the southern and central Plains. Hard red winter wheat would be hurt the most, they say. Worldwide, wheat, corn and soybean stocks are expected to rise. The United States is the world’s largest grower of corn and soybeans.