June 18, 2008

USDA trims feed grains use forecast for 2007-08

The USDA's forecast for total feed grains use in 2007-08 was decreased by 1.5 million tonnes to 350 million tonnes, as a result of lower corn exports.

A smaller projected corn crop and higher prices are anticipated to reduce corn feed and residual use.

Projected total supply was decreased 8.3 million tonnes in 2008-09, due to a decrease in feed grain output, offset slightly by an increase of 1.5 million tonnes in beginning stocks.

The Economic Research Service (ERS) of the USDA projected US 2008-09 corn production to plummet by 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 rainfall across the Corn Belt.

The agency said that lower supplies would boost prices and lower feed and residual use, exports and ending stocks.