U.S. wheat stockpiles before this year’s harvest will be 3.6 percent bigger than forecast by the government as cattle producers use less to feed animals, according to broker Allendale Inc.
Inventories on May 31 will total 742 million bushels, more than the 716 million forecast by the U.S. Department of Agriculture on Jan. 11, Allendale said today in a statement at its annual conference in Crystal Lake, Illinois. Livestock producers will feed 320 million bushels to cattle, less than the 350 million estimated by the USDA. Other uses, mostly in human food, will reach 1.03 billion bushels, compared with the government forecast of 1.025 billion.
In the year that ends May 31, 2014, feed use will continue to drop, reaching 220 million bushels, as demand in food making remains unchanged, boosting inventories to 800 million bushels, Allendale said.
Production of the 2013-2014 crop, most of which now lies dormant on farms in the Great Plains and will be harvested starting in June, will total 2.213 billion bushels, down 2.5 percent from the previous season, Allendale said. Farmers will seed 56.5 million acres with wheat in the U.S., up from 55.7 million, and yields will drop to 45.2 bushels an acre in the next crop year, from 46.3, the company said.
Exports of wheat from the U.S., the world’s biggest shipper, will fall 2.4 percent to 1.025 billion bushels next year from an estimated 1.05 billion this year, according to the report. The average cash price, pegged at $8 a bushel in the year through May 31, will fall to $7 next year, Allendale said.
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