USDA: Higher feed grain prices expected
According to projections of the Economic Research Service of the US Department of Agriculture (USDA) projected US 2008/09 corn production was decreased 390 million bushels this month to 11.7 billion.
The decline reflects lower expected yields due to slow planting progress,
slow crop emergence, and persistent, heavy rainfall across the Corn Belt. Lower
supplies are expected to boost prices and lower feed and residual use, exports,
and ending stocks.
World coarse grains production is expected to be
down, with increased foreign production prospects offsetting about two-thirds of
the US drop. Because of increased foreign beginning stocks, world coarse grains
supplies for 2008/09 are up this month.
Feed grains use
declines
Forecast total feed grains use for 2007/08 was decreased
1.5 million metric tonnes to 350 million, this month, as a result of lower corn
and sorghum exports. Projected domestic use in 2007/08 increased 200,000 t this
month due to increased sorghum feed and residual use. The total supply of feed
grains remains unchanged in 2007/08.
Projected total supply was decreased
8.3 million t in 2008/09, due to a forecast decrease in feed grain production,
offset slightly by an increase of 1.5 million t in beginning stocks. Total
domestic use in 2008/09 is forecast at 281.2 million t, up 1.1 million from
2007/08.
Expected total use in 2008/09 is decreased 6.1 million t this
month as a result of lower exports and feed and residual use. A smaller
projected corn crop and higher prices are anticipated to reduce corn feed and
residual use.
For a full report go to Feed Outlook.
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