USDA Feed Outlook- August 2012
US feed grain supplies for 2012/13 are projected sharply lower again this month with corn production forecast 2.2 billion bushels lower and sorghum production forecast 92 million bushels lower, according to the USDA Feed Outlook.
The forecast US corn yield is reduced 22.6 bushels per acre to 123.4 bushels as extreme heat and dryness continued, and in many areas worsened, during July across the Plains and Corn Belt. Sorghum production is also forecast lower this month due to drought. Total US corn supplies for 2012/13 are projected down 2.0 billion bushels at a 9-year low. The large reduction in forecast corn supplies this month is expected to result in record-high prices, which will ration demand and lower use. Corn use is projected 1.5 billion bushels lower with large cuts in feed and residual use; food, seed and industrial use; and exports. Ending stocks are forecast down 533 million bushels to 650 million bushels, the lowest since 1995/96. Record corn prices for 2012/13 reduce projected foreign corn imports and use this month, but a record corn crop in China and 2 years of large crops in Brazil support some growth in foreign corn feed use in 2012/13.
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