February 21, 2007

 

USDA: Improved prospects for corn crops in South America

 

 

The US supply of feed grains for 2006-07 remained unchanged from the previous month but use was down marginally, says the USDA in its February feed report.

 

Compared with 2005-06, supplies are down and use is up.

 

Global coarse grains production is up 4.8 million tonnes this month to 967.2 million, says the USDA.

 

Corn projections are unchanged this month, with supplies down from last year and use stronger.

 

Brazil and Argentina are projected to harvest record corn crops in 2006-07, according to the report. Rains have been excellent across much of South America, and corn crops approaching harvest in the two countries are mostly in good condition.

 

Brazil's corn crop is projected to reach 46 million tonnes while that of Argentina could hit 21 million tonnes.

 

Corn production for the EU-25 was down slightly this month as a drop reported for Poland more than offset increases for Hungary and France.

 

Global feed use of corn is projected up 1.1 million tonnes this month to a record 479.0 million. Increased corn prices are not preventing record global feed use. The largest increase is for Brazil, up 0.5 million tonnes to 34.0 million tonnes.

 

US corn exports for the October-September 2006-07 trade year were reduced 0.5 million tonnes to 56.0 million tonnes due to increased competition expected from Argentina and Brazil. However, the September-August local marketing year US export forecast remained unchanged at 57.15 million tonnes.

 

For the full USDA report, please click here

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