Global inventories of wheat and soybeans will stand at record highs at the end of the current marketing year, swollen by huge crops, said the International Grains Council in its monthly Grain Market Report. Wheat production was forecast to be record-large for the third year in a row while the soybean supplies would mount on the cumulative effect of harvests outrunning demand for three years in a row. Soybean stocks are forecast to rise by 5 percent from 2014/15 and wheat by 4 percent.
Smaller rice crops in major exporters India and Thailand will help reduce stockpiles by 10 percent in one year, but they still would be a 10-week supply, an ample cushion.
Overall, world grain supplies are forecast to reach a 29-year high at the end of this marketing year, up 2 percent in a year and a large enough stockpile for three months of consumption. Besides the record wheat crop, the sorghum harvest is expected to be the largest in two decades and the barley crop would be 78-percent larger than average. Added to that, rice output is only fractionally below the 2014/15 record. Corn is down 4 percent from last year’s record.