Stockpiles of soybeans in the U.S. will expand 43 percent in 2016 as competition from South America reduces exports, a government report showed.
Supplies on Aug. 31, 2016, are projected at 500 million bushels, compared with 350 million bushels on the same date this year, the U.S. Department of Agriculture said in a report Tuesday in Washington. Analysts in a Bloomberg survey forecast 2016 stockpiles of 446 million bushels.
Surpluses will increase even though soybean production is forecast to decline to 3.85 billion bushels, 3 percent less than the 2014 crop, as yields are projected to fall from last year’s record. Exports are forecast at 1.775 billion bushels for the year beginning Sept. 1, down from 1.8 billion bushels in the current year.
Inventories of corn, the biggest U.S. crop by value, are projected to decline 5.7 percent to 1.746 billion bushels as of Aug. 31, 2016, as production drops 4.1 percent while consumption rises 1 percent to a record.
Production of both corn and soybeans rose to all-time highs last year as favorable growing conditions pushed yields to records. The U.S. is the world’s top exporter of the crops. Rising grain production has helped keep global food inflation in check.