Record global wheat stockpiles may be even larger than expected, as China cuts back on use and the European Union harvests a bigger crop, a U.S. Department of Agriculture report showed.
World inventories of wheat this year may reach 239.26 million metric tons, exceeding the highest estimate in a Bloomberg survey of analysts and 0.7 percent more than forecast last month, the department said Tuesday in Washington.
Use in China, the world’s biggest wheat-consuming nation, will fall to 112 million tons as the amount of the grain fed to livestock decreases. The EU production forecast of 160 million tons was 1 percent bigger than last month’s projection, increasing the USDA’s estimate for a record global crop.
U.S. wheat stockpiles this year may rise to 976 million bushels, the highest since 1987, according to the report. “With supplies rising and use declining,” global stocks “remain record large,” the department said in the report.
The USDA’s estimate for soybeans, the most valuable U.S. crop after corn, fell more than expected to 445 million bushels, as exports may be more than the agency forecast in March. Domestic corn stockpiles for the marketing year that ends Aug. 31 may increase to 1.862 billion bushels, higher than analysts predicted, on lower projected feed use.
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