U.S. soybean production will jump 12 percent this year as farmers plant more and yields recover from last year’s drought, according to broker Allendale Inc.
Production of the crop that farmers will start sowing in in May will rise to 3.364 billion bushels from 3.015 billion last year, Allendale said today in a statement at its annual conference in Crystal Lake, Illinois. Farmers will seed 78.7 million acres, up from 77.2 million last year, and yields will rise to 43.4 bushels an acre from 39.6, the company said.
Inventories on Aug. 31, 2014, will total 164 million bushels, up from an estimated from 136 million a year earlier, which was forecast by the U.S. Department of Agriculture on Jan. 11, according to the report. Allendale forecast stockpiles at the end of the current marketing year at 140 million bushels.
Exports of soybeans from the U.S., the world’s biggest shipper, will jump 1.4 percent to 1.4 billion bushels from an estimated 1.345 billion a year earlier, according to the report. The average cash price, pegged by Allendale at $14 a bushel in the year through Aug. 31, will fall to $11.50 next year.
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