The gap between traders’ estimates of U.S. corn reserves, the world’s second-biggest, and official figures have reached the size of Russia’s annual consumption, increasing price swings at a time of near-record food costs.
Corn rebounded from the lowest price in three years after the government predicted smaller harvest gains than analysts forecast in the U.S., the world’s largest grower and exporter. Soybeans rose the most in eight weeks.
Government forecasters may have to reverse three straight months of lower U.S. corn-crop estimates as warm weather and near-record planting spur Goldman Sachs Group Inc. and Deutsche Bank AG to predict a record crop.
World reserves before next year’s harvest will be larger than the government forecast in November as farmers harvested bigger crops than a year earlier. U.S. inventories next year are projected to be higher than last month’s forecast.