2006 could be a record-setting year for soybeans in the United States. The USDA is forecasting 3.2 billion bushels of soybean production this year, which would be the largest U.S. crop on record.

The projection is up slightly from October and 5 percent above 2005. Yields are expected to average 43 bushels per acre, which would be equal to last year’s record high yield.

Soybean prices also went up. The U.S. season-average soybean price for 2006-’07 is projected at $5.40 to $6.40 per bushel, up 50 cents from the previous estimates. Soy oil prices are projected at 24 to 28 cents per pound, up 1 cent on both ends of the range.

Global oilseed production is projected at a record 392.5 million tons, up 2.1 million tons from last month’s projections.

The USDA’s corn production forecast dropped 1 percent from last month to 10.7 billion bushels. The projection is 3 percent lower than 2005. Yields are expected to average 151.2 bushels per acre, which would be higher than last year. If realized, the yield would be the second largest on record, behind 2004.

Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.

Posted: 10:53 a.m. CST Thursday, November 9, 2006