July 18, 2006

US feed grain supplies down while usage goes up

US farmers reduced plantings of most feed grains in 2006-07 in reaction to high input prices and lower prices than the previous year, according to a report released by USDA's Economic Research Service on Jul 14.

Increased use for ethanol, exports and food uses had lowered ending stocks even though feed and residual use has gone down slightly. 

Ending stocks are expected to decline 45 percent compared with a year earlier, to 31.4 million tonnes. Feed and residual use in 2005-06 was raised 100 million bushels and exports were raised 25 million.

US feed grain production in 2006 is projected at 287 million tonnes, up 4 million from a month ago but down 11.1 million tonnes (-3.6 percent) from 2005.

Feed grain supply in 2006-07 is projected at 347 million tonnes, up 1.2 million from last month, but down 12.8 million tonnes (-3.7 percent) from 2005-06.

Beginning stocks decreased 3 million tonnes this month to 56.8 million because of higher exports and feed and residual use this year.