U.S. soybean inventories will double before next year’s harvest as the 2014 crop jumps to a record high after farmers said they plan to sow the most acres ever, the government said.
Reserves on Aug. 31, 2015, will be 330 million bushels, up from an estimated 130 million this year, the U.S. Department of Agriculture said today in a report. The average estimate of 31 analysts surveyed by Bloomberg was 297 million bushels (8.083 million metric tons). The USDA said in February that reserves may total 285 million bushels.
Rising supplies may help reduce livestock-feed costs for meat producers including Tyson Foods Inc., while boosting margins for processors such as Bunge Inc. and Archer-Daniels- Midland Co.
This year’s crop is projected at a record 3.635 billion bushels, compared with 3.55 billion forecast in February and 3.289 billion a year earlier.
Corn inventories before the 2015 harvest in the U.S., the world’s largest grower and exporter, will rise more than analysts expected as production increased more than forecast.
Reserves on Aug. 31, 2015, will reach 1.726 billion bushels from 1.146 billion forecast this year, the U.S. Department of Agriculture said today in a report. Analysts in a Bloomberg survey expected 1.641 billion. Production in the season that starts Sept. 1 will total 13.935 billion bushels, compared with 2013’s record 13.925 billion bushels (353.7 million metric tons) and the 13.736 billion forecast by analysts.
Corn prices jumped 22 percent in 2014 as exports surged and record cattle and hog prices boosted demand for the grain in animal feed. July futures rose 0.5 percent yesterday to $5.165 a bushel on the Chicago Board of Trade.
Corn is the biggest U.S. crop, with a 2013 value of $62.7 billion, government figures show.