U.S. Raises 2014 Wheat Reserve Forecast to 561 Million Bushels

U.S. wheat inventories before next year’s harvest will be larger than the government forecast last month.

Reserves on May 31, 2014, will total 561 million bushels, compared with 551 million (15 million metric tons) forecast in August, the U.S. Department of Agriculture said today in a report. Analysts surveyed by Bloomberg were expecting 544 million, on average. The USDA is scheduled to release its final U.S. production estimate on Sept. 30.

World output in the crop year that began June 1 will be 708.89 million metric tons, compared with 705.38 million forecast last month, the government said. Global inventories before the start of the Northern Hemisphere harvests in 2014 will be 176.28 million tons, compared with 172.99 million predicted in August, the USDA said. Traders expected reserves to fall to 172.75 million tons, on average.

Through yesterday, wheat futures on the Chicago Board of Trade dropped 27 percent in the past 12 months to $6.48 a bushel.

The USDA forecast wheat prices at the farm will average $6.50 to $7.50 a bushel in the 12 months that began June 1, compared with $6.40 to $7.60 a month earlier.

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