U.S. wheat inventories before next year’s harvest will be larger than the government forecast in September.
Reserves on May 31, 2014, will total 565 million bushels, compared with 561 million (15.27 million metric tons) forecast in September, the U.S. Department of Agriculture said today in a monthly report. Analysts surveyed by Bloomberg were expecting 529 million, on average. The agency’s October report was canceled during a partial government shutdown.
World output in the 12 months that began June 1 will be 706.38 million metric tons, compared with 708.89 million forecast in September, the government said. Global inventories before the start of the Northern Hemisphere harvests in 2014 will be 178.48 million tons, compared with 176.28 million predicted two months ago, the USDA said. Traders expected 176.54 million.
The USDA forecast wheat prices at the farm will average $6.70 to $7.30 a bushel in the 12 months that began June 1, compared with $6.50 to $7.50 estimated in September.