U.S. soybean inventories will double before next year’s harvest as the 2014 crop jumps to a record 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.