Economic and Marketing Information
FOR INDIANA  FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana  
August 31, 1966
Sept   Oct.   Nov Dec. Jan.  Feb. March April May June July   Aug.
Soybean prices for the 1966 crop will be good.
In view of the anticipated record production this
may seem unusual. The answer lies in the fact
that use has been increasing at an average rate of
about 10 percent per year. As a result of these
upward trends in utilization, the 1966 soybean
crop will probably move at an average of nearly
$3.00 per bushel—with prices at harvest the highest in over 10 years.
Record Soybean Production-Supplies-Utilization
The 1966 soybean crop is an expected record of
861 million bushels (August 1 estimate), about 2
percent above last year's. Farmers planted 7 percent more soybeans in 1966, but estimated yields
would result in only a 2 percent increase in production. The Indiana soybean crop is estimated at
73 million bushels, compared to 83 million bushels
last year. Yields for Indiana are forecast at 25
bushels per acre versus 28 bushels in 1965.
Total soybean supplies are at record levels. The
1966 crop plus September 1 supplies are expected
to total 898 million bushels (last year's total supply was 873 million). Utilization of soybeans has
been at a rate high enough to prevent large carryover stocks. Prediction of soybean stocks on Sep-
Item
1965 Crop
1966 Crop
(Aug. 1 estimate)
Stocks September 1
Production
million bushels
29.7                                  37
843.7                               861
Total Supply
Crushings
Exports
Seed, feed and residual
Total Disposition
Carryover Stocks
873.4
535
255
50
840
33.4
898
555
270
52
877
21
tember 1, 1966 is 33 million bushels, compared to
30 million bushels September 1, 1965. Details of
soybean supplies and disposition are shown in the
table.
The projected utilization for the 1966 soybean
crop assumes only a modest increase in the rate of
crushings and exports compared to last year.
Prices during the 1965 harvest were near or
slightly above the loan rate of $2.25 per bushel
(Indiana average farm price during harvest averaged about $2.35 per bushel). Soybean prices compared to soybean oil and meal prices at that time
permitted a relatively attractive margin for processors. Utilization was thus relatively high early
in the marketing year. Processing margins are
not expected to be quite as high as the 1966 crop
begins to move and this, together with higher soybean prices, may keep the rate of crushings and
exports during 1966-67 from increasing much
above the previous year's levels. The relatively
strong demand for soybean products for both domestic and export use will still permit the crop to
move at prices averaging above last year.
Soybean Prices to Remain Strong
Prices for 1966 soybeans at harvest will likely
average well above the loan rate of $2.50 per
bushel. Mid-August prices ($3.60) will probably
not prevail into the harvest season. Harvest prices
will average near the $3.00 level if present indications materialize. Farmers have had opportunity
to contract soybeans around the $3.30 level. It is
assumed that a relatively large volume was contracted at near the $3.00 level. No slackening of
demand for soybean products is foreseen. Price
increases for the season will probably not be as
great as for the 1965 crop (about $1.30), but expected increases should more than cover storage.
Some major unforeseen development could boost
prices substantially even above present levels.