US grain production down in 2008

The June 30 Acreage report showed planted and harvested area to be down from
last year for corn, sorghum, and oats, while that for barley increased from
2007. Slight adjustments were made in feed grain use this month to reflect June
1 stocks.

The resulting changes raised 2007/08 ending stocks and 2008/09
supplies, but 2008/09 ending stocks are expected to remain at relatively low
levels. Forecast 2008/09 prices for all four feed grains were raised this month
as competition from soybeans for 2009 acres is expected to support corn prices
in the new marketing year.

Global production up
Global coarse
grain production is up 1.5 million tons this month to 1,069.0 million, as
foreign increases more than offset the U.S. decline. World corn production is
unchanged this month at 775.3 million tons with increases and decreases
offsetting.

World production increases for millet, barley, and sorghum
more than offset small reductions in production for oats and rye. The largest
increase this month in 2008/09 projected coarse grain production is for the
EU-27, up 2.1 million tons to 151.4 million.

Corn production prospects
are up 1.3 million tons to 57.5 million due to increased area in France.
Projected barley production is up 0.8 million tons to 60.8 million, with
better-than-expected yields reported in Spain, France, Finland, and Hungary more
than offsetting lower yields in Poland and Germany.

For the full report
go to Feed Outlook