CHICAGO (Dow Jones)–The U.S. on Tuesday unexpectedly cut its soybean
harvest estimate and slashed its supply forecast, setting the stage for gains
in soybean futures.
Soybean production was pegged at 3.375 billion bushels, down 1% from the
government’s October estimate, according to the U.S. Department of Agriculture.
Analysts surveyed by Dow Jones, on average, had expected an increase of about
0.5% from last month.
The USDA projected soybean supplies as of Aug. 31, 2011–the end of the
crop’s marketing year–at 185 million bushels, down 30% from its October
estimate. Analysts had expected the government to trim the forecast about 9%.
“That’s bullish as heck,” a trader on the floor of the Chicago Board of
Trade said.
Traders predicted soybean futures would open 30 to 50 cents a bushel higher
at the CBOT. In overnight electronic trading, soybeans for January delivery,
the most-active contract, climbed 19 cents, or 1.5%, to $12.93 3/4 a bushel.