Bumper crops around the world mean that a dramatic expansion of corn and soybean stockpiles is on the way, says the International Grains Council. In a monthly update, it forecasts a 28 percent increase in the soybean carryover and an 11 percent increase in corn stocks at the end of the 2014/15 marketing year. IGC, based in London, expects a record world soybean crop of 304 million tonnes, up 8 percent from last season. The U.S. soybean carryover would be the largest in eight years.
U.S. corn production is forecast for 13.9 billion bushels (353 million tonnes) with end stocks of 1.83 billion bushels (46.5 million tonnes). Both are slightly larger than USDA projected early this month. The corn carryover would be the largest in nine years under the IGC estimate. Low prices will encourage corn usage by livestock feeders and foodmakers, says IGC, but the global surplus still would rise by 18 million tonnes in one year.
With a record crop on the horizon, the United States “is expected to reclaim the role of leading global soybean exporter that it lost to Brazil in 2012/13,” says USDA. Exports are forecast for a record 1.675 billion bushels (45.6 million tonnes).