August 22, 2006

USDA: Corn up, dry weather to curb some global output

Forecast yields of US corn are above used in earlier production estimates, says the USDA in its August feed report. With projected utilisation of feed grains greater than production, the agency forecasts ending stocks of the four feed grains--corn, sorghum, barley and oats--in 2006/07 at 35 million tonnes, up from 31 million last month but down from 57 million estimated for 2005/06.

Increased corn supplies in 2006/07 weakened corn price prospects this month but expected prices are still above 2005/06, the USDA said.

US feed grain production in 2006 is forecast at 292 million tonnes, up 5 million from a month ago but down 7 million from 2005, based on the USDA's latest estimates. Production is down from last year for all of the individual feed grains. Feed grain supply in 2006/07 is forecast at 351 million tonnes, up 5 million from last month but down 8 million from 2005/06.

Total feed grain use is projected at 316 million tonnes in 2006/07, up 1 million tonnes from last month, and up 13 million from the previous year. Feed and residual use in 2006/07 is expected to account for 51 percent of total use, said the USDA report.

World coarse grains production projected for 2006/07 is nearly unchanged this month at 970 million tons as the increase in the United States is offset by reduced foreign prospects, says the USDA, especially for the EU-25 which saw hot dry weather during July in Spain, France and Germany, and into Scandinavia.

As the year had not begun, there were few changes this month to projected 2006/07 coarse grains trade for the October-September period. The USDA predicts corn exports as unchanged. Imports for Mexico and Iran were reduced while Japan and Colombia increased, it said.

For the full USDA report, click here.