Over the last 10 marketing years, soybean export totals from March through August averaged 367 million bushels.
At 1.392 billion bushels, total use of corn for ethanol production during the second quarter outpaces last year’s use by 21 million bushels.
Presently, an expectation for an increase in soybean planted acreage exists.
Soybean export numbers show that most of U.S. trading partners at or near last year’s export levels except for China.
The recent strength in ethanol production has led to speculation about changes to USDA’s estimate of corn used for ethanol in the pending WASDE report.
Considerable speculation will occur over the next few months about the acreage decisions farmers will make in 2018.
Soybean export inspections currently trail last year’s pace by approximately 12%.
The U.S. corn production forecast was increased to 14.6 billion bushels, up almost 300 million bushels over the October forecast.
A price rally for corn in the short run may come from the supply side.
Rather than project the planted acreage of soybeans, it could be informative to think about the number of soybean acres necessary in 2018.