November 22, 2006

USDA: Feed grain production lowered, increased foreign production nearly offsets US decline

The US feed grain production for 2006/07 is forecast at 286 million tonnes, down from 290 million last month, and down from 299 million in 2005/06.

Since there were no changes in beginning stocks or imports, so total supply decreased the same amount as production.

Total 2006/07 feed grain utilisation is projected at 315 million tonnes, down from 318 million last month, and up from 304 million in 2005/06.

Feed and residual use was decreased for corn this month lowering domestic use to 255 million tonnes from 256 million last month, but up from 244 million in 2005/06.

Corn production is forecast at 10.7 billion bushels, down 160 million from last month and 367 million less than 2005, according to agency report. The 2006 average yield would be the second largest ever, but well behind 2004¡¯s record 160.4 bushels per acre.

World coarse grains production forecast for 2006/07 was reduced fractionally this month to 964 million tonnes. The 4-million-tonne drop in US production was nearly offset by a net increase in foreign coarse grains production that also exceeded 4 million tonnes.

China's corn production was increased 2 million tonnes to a record 143 million tonnes on account of favourable harvest conditions in the main growing areas and preliminary provincial harvest reports. Foreign use projections increased less than production estimates, boosting ending stocks outside the United States nearly 3 million tonnes.

For the full USDA report, click here