January 23, 2007

USDA: Lowered supply for US feed grains; Corn records third highest in 2006
 

The US 2006-07 feed grain production fell due to smaller corn and sorghum crops.

Feed grain supplies for 2006-07 are down 2 percent from December and down 6 percent from 2005-06. Beginning stocks were revised down for corn but up for sorghum, resulting in a small net decline for total feed grains.

Total use of feed grains dropped this month, as lower corn feed and residual use more than offset increases in feed and residual use of sorghum and barley.

On a Sept-Aug marketing year basis, feed and residual use for the four major feed grains (corn, barley, oat and sorghum) plus feed wheat was forecast at 163.1 million tonnes, down 1.1 million tonnes from last month, and 165.6 million tonnes from last year.

World 2006-07 coarse grain production is projected down 6.6 million tonnes this month to 962 million tonnes, with most of the drop in US corn production. Foreign production is estimated down 1 million tonnes to 682 million tonnes. The EU-25, down 0.8 million tonnes, accounted for most of the foreign decline, with several member countries statistical agencies reporting final production.

Corn production for 2006/07 fell by 210 million bushels this month to 10,535 million bushels. Even with this reduction, the 2006 crop remains the third largest on record.

Corn exports are up 50 million bushels to 2.25 billion bushels because of increased sales and an increase in projected 2006-07 world corn trade.

Global corn trade in 2006-07 is projected up 1.2 million tonnes this month to 83.0 million tonnes, nearly the same as the previous year's record level despite sharply higher prevailing prices.

For the full USDA report, please click here