USDA released its November estimates of the 2007-08 U.S. and world crops, supply and demand. Soybean production is forecast at 70.6 million tonnes, based on an estimated yield of 2.77 tonnes per hectare. Soybean stocks are expected to be 5.72 million tonnes, less than one-half of beginning stocks and near a theoretical minimum pipeline stocks level. The 27,200 tonne addition to seed use made the difference, possibly signaling more 2008 soy acreage. Soyoil demand was adjusted with 45,400 tonnes moved from domestic food use to exports. U.S. oilseed ending stocks for 2007-08 are projected at 6.8 million tonnes. Total U.S. oilseed production is projected at 80.1 million tonnes.

Global oilseed production for 2007-08 is projected at 390.4 million tonnes. Global oilseed ending stocks for 2007-08 are reduced 1.8 million tonnes to 56.3 million tonnes mainly reflecting lower soybean stocks in Brazil and China. Brazil stocks are reduced due to a projected increase in soybean crush for both 2006-07 and 2007-08. Global oilseed stocks for 2007-08 are projected down 21 percent from 2006-07.

The Senate on November 8 overrode President Bush’s veto of the Water Resources Development Act (WRDA), the first time since Bush he took office that Congress has enacted a law over his objections. The Senate vote was 79-14, considerably over the two-thirds majority required. The Senate vote, which enacted the bill, followed a 361-54 House vote on November 6 to overturn the veto of the $23.2 billion authorization. Bush has vetoed four other bills, three of them this year. Until now, each veto has been sustained.

Bush vetoed the bill November 2, saying it would cost too much and would not give priority to the most urgent Corps projects. The conference report authorized far more spending than either the $15 billion House bill or the $14 billion Senate version.

Noting that Congress has not enacted a water projects authorization bill since 2000, supporters argued that the new law will help address a backlog of overdue infrastructure projects.

The American Soybean Association said last week it appreciates the persistence of Congress to pass the Water Resources Development Act. The legislation “is key to soybean sales,” ASA President John Hoffman said. “U.S. waterways are the most economical and environmentally friendly way to move U.S. soybeans to domestic and foreign markets,” said Hoffman. ASA says 75 percent of U.S. soy exports travel through the upper Mississippi and Illinois river systems, which are set to receive critical improvements – such as new locks – thanks to the WRDA.

Senate Majority Leader Harry Reid (D-Nev.) pulled the farm bill from the Senate floor late November 8, blasting Republicans for refusing to allow debate to proceed. “We’ve basically wasted the whole week,” Reid said, accusing Republicans of “pouting over process.” Republicans said all they needed was an open amendment process.

Democratic and Republican leaders will still seek an agreement on the number and scope of amendments, and if an accord can be reached within a reasonable amount of time, there could still be enough time the week of November 12 to vote on amendments as long as there are not “too many of them.” If no agreement on amendments is reached, Reid is expected to file a cloture motion to limit debate on the farm bill, likely on the amendment offered by Sens. Chuck Grassley (R-Iowa) and Byron Dorgan (D-N.D.) to establish “hard” limits on subsidies payments. If Reid files a cloture motion, the Senate would vote on it on Nov. 13 because the Senate is not in session on Veterans’ Day. If successful, debate would then be limited to 30 hours, which can be further reduced by unanimous consent.

In related news, Sen. Pat Roberts (R-Kan.), said the funding proposal contained in the Senate farm bill would disrupt the timing of payments and, thus farming and other business operations for a number of producers. “With delayed payments and timing shifts, and paying crop insurance premiums in some cases before a crop is harvested, there will be some cash flow concerns,” said Roberts. “And with the changes in crop insurance reimbursements, those companies, if they stay in business, will have to have more reserves.”

Abandoning a decades-old justification for the farm bill –– helping small family farmers who are struggling to survive –– Roberts pointed out that “while 15 percent of the farmers may get 85 percent of the [farm program] payments, that 15 percent is responsible for around 85 percent of agriculture’s production.”

Argentina increased taxes on exports of soybeans, corn and wheat an average of five percentage points to boost government revenue from surging crop prices and limit domestic food inflation.Export levies on soybeans, Argentina’s biggest export crop, jumped to 35 percent from 27.5 percent; corn from 20 to 25 percent; wheat from 20 to 28 percent and oil from 8 to 10 percent, said Economy Minister Miguel Peirano.

“These measures will generate price stability, growth in investments and economic expansion” said Peirano adding that increasing the cost of exports also is designed to reduce domestic inflation.

Argentina’s government implements price controls on fuel and some food items and limits exports to ensure sufficient supply in the local market.The new tax regime took effect immediately.

The soy complex closed mixed on November 8, as the trade awaited USDA’s November crop report issued the following day. Speculators were buyers of soybeans and soyoil, but sellers of soybean meal, making soyoil the stronger product despite lower petroleum prices. November bean futures closed up $1.56, finishing at $377.72; January gained $1.01, closing at $382.59; and March was up $1.19, ending at $388.10. December meal decreased $3.86 closing at $306.88; January was $3.09 lower, finishing at $308.42; and March meal closed down $2.43 ending at $311.84. December oil closed $11.24 higher to finish at $973.33; January was up $10.58, closing at $983.47; and March gained $10.58, closing at $995.38.

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