December 21, 2005

USDA: US feed grain exports reduced in December
 

Feed grain supplies for 2005/06 are down 0.2 million tons from November, but up 6.9 million metric tons from 2004/05. The large carry-in from the record 2004 corn crop was the principal reason for the supply increase.

Total use of feed grains was lowered this month, as both corn and sorghum exports were reduced and more than exceeded the increase in barley exports. Exports for 2005/06 are still up 2 million tons from 2004/05. Domestic use of the four feed grains was unchanged this month. The reduction in exports resulting in ending stocks being increased 2.4 million tons, to 65.8 million. In 2004/05, ending stocks for the four feed grains were 58.7 million tons.

As increased forecast for China's 2005/06 corn production was the key factor boosting global coarse grains production, consumption and ending stocks, as well as boosting China's corn export prospects and reducing U.S. corn exports. Increased coarse grains production in Canada, Australia, and Ukraine also contributed.

Projected 2005/06 world coarse grains production is 954 million tons, up 7.4 million this month, with 5.8 million of that increase being in foreign corn production.

The largest increase was a 4-million-ton boost to China's corn crop to 130 million tons. The change from basing taxes on grain production to providing a subsidy based on grains area may be contributing to an increase in reported production.

China's 2005/06 projected corn production is down slightly compared with the previous year because the increase in area was offset by a slightly lower yield. This is another huge corn crop for China, just 2 percent less than the 1998/99 record.

For the full USDA report, click here.