June 20, 2006

 

US exports of corn up while stocks are down
 

 

Corn exports were increased 50 million bushels due to the strong pace of sales and shipments according to USDA's Feed Outllook for 2005/06 released Jun 13.

 

Ending stocks for corn were down 50 million bushels but barley and oats were both up 5 million bushels.

 

2006/07 feed grain production remains at 283 million tonnes, according to USDA.

 

Feed grain supplies are 345 million tonnes, down 1 million from last month and down 4 percent from 2005/06, the report said.

 

For 2005/2006, corn exports were raised 50 million bushels, reflecting the strong export pace due to reduced competition from Argentina and China.

 

This change reduced ending stocks by the same amount.

 

The report said export projections included significant changes to corn export prospects for China and the United States.

 

US corn exports for 2005/06 were increased 1.5 million tonnes to 53.5 million due to the strong pace of recent sales and shipments.

 

The September-August US local marketing year export forecast increased 50 million bushels to 2,075 million bushels, the USDA said.

 

As of June 1, 2006 corn outstanding sales were 8.4 million tonnes, up 2 million compared with the previous year, according to the report.

 

Barley exports were lowered 5 million bushels, reflecting weaker export trends and resulting in a 5-million-bushel increase in ending stocks, the report said.

 

Oats imports were raised 10 million bushels, resulting in a 5-million-bushel increase in feed and residual use and a 5-million-bushel increase in ending stocks.

 

On a September-August basis, 2006/07 feed and residual for the four feed grains plus feed wheat is unchanged at 163 million tonnes, down 1 million tonnes from last year.

 

Global coarse grains production went up 0.3 percent to 966.9 million.

 

However, it is still below the record 2004/05 crop of 1,015 million tonnes.

 

Changes in China dominated increased projected coarse grains use for 2006/07, boosting global use to a record 1,008 million tonnes, the report said.

 

EU-25 coarse grains production suffered a 0.8-million-tonne decline to 136 million tonnes.

 

Lower-than-expected corn seedings were reported for France and Spain but increases in Hungary and Italy partly offset the declines in France and Spain.

 

Indonesian corn yield prospects were reduced, with production 0.3 million tonnes to 7.2 million.

 

The USDA said that for Russia, increased sowing of spring barley and corn to replace spring wheat boosted coarse grain production prospects 1.1 million tonnes to 29.3 million tonnes.

 

More coarse grains and less wheat were used as feed in Russia. However, the reverse is true for the EU, where more wheat and barley but less corn is used for feed.

 

Global coarse grains ending stocks projected for 2006/07 were almost unchanged at 131 million tonnes, with the foreign increase offsetting the US decline. Most of the month-to-month increase is for China.

 

The USDA report said global 2006/07 coarse grains trade prospects were mostly unchanged. Global coarse grains trade is projected to reach 103.4 million tonnes in 2006/07, up 0.5 million.

 

Coarse grains trade for 2005/06 (October-September) was increased slightly to 102.7 million tonnes, the report said.

 

For full USDA report, click here