Production is estimated at a record 8.3 Mt, up 27% from last year’s record of 6.6 Mt. The increase is largely due to the sharp increase in harvested area, to 2.93 Mha, more than 0.71 Mha higher than last year. About 64% of Canada’s soybeans are expected to be grown in Eastern Canada and 36% in Western Canada. Soybean yields are estimated at 2.84 t/ha compared to 2.97 t/ha for 2016-17. Total supply is forecast to increase by 20% from last year to 8.9 Mt due to the sharp rise in output which more-than offsets the minor decrease in carry-in stocks and imports. The forecast for domestic crush has been lowered by 0.1 Mt, from last month, to 1.8 Mt. This is marginally lower than last year and below the record set in 2015-16. The revised crush forecast is supported by the slowdown in the crush pace. Canadian oilseed processors are operating at 56% capacity for the year to-date compared to 62% last year at this time. Exports are forecast to rise sharply to a record of 6.1 Mt versus 4.5 Mt in 2016-17 and the five-year average of 3.8 Mt. Soybeans are forecast to be the third largest crop exported from Canada after wheat ex-durum and canola with buyers widely dispersed by country. Compared to last year, carry-out stocks are forecast to rise significantly with most of it in commercial stocks. Soybean prices are forecast to decrease from last year to a range $400 to $440/t. The price outlook has been pressured by lower US farmgate prices in the soybean complex and the stronger Canadian dollar. The main factors to watch are: (1) harvest progress in Eastern Canada, (2) Canadian crush and export pace, US export inspection pace, (4) US harvest progress, (4) South American planting pace, and the strength of Chinese buying.