USDA Reports High Feed Grain Supply in Spite of Lower Yield

The U.S. 2012/13 feed grain supply is forecast at 321.4 million metric tons, up 2.7 million from last month’s forecast and 37.0 million below last marketing year. An increase in the feed grain supply is projected despite a reduction in estimated corn and sorghum yields and subsequent production because carryin stocks are projected higher. A decline in feed and residual use in 2011/12 is the primary contributing factor to the 4.1-million-ton increase in beginning stocks this month. Forecast feed grain production, at 284.5 million tons, is 1.3 million below last month’s forecast and 39.0 million below last year.

Projected feed grain use for 2012/13 increased 0.6 million tons as larger forecast feed and residual use offset a decline in exports. Total use is forecast 25.5 million below last year at 300.1 million tons, compared with the 2011/12 estimate of 325.6 million. Feed and residual disappearance is projected 1.9 million tons higher this month, in part reflecting growth in expected September-December corn disappearance with an expected rise in early new-crop usage during the 2011/12 marketing year. Exports were lowered 1.3 million tons from last month’s forecast to 34.6 million. Ending stocks are forecast 2.1 million tons higher than last month’s forecast, to 21.3 million. 

For the full USDA report, click here.