U.S. feedgrain supplies for 2012/13 are projected higher this month, with a reduction in forecast corn production more than offset by higher projected corn carryin, according to a report released today by USDA’s Economic Research Service.
U.S. corn production is lowered 51 million bushels, with the national average yield forecast 0.6 bushels per acre lower at 122.8 bushels. U.S. corn supplies for 2012/13 are projected 108 million bushels higher at 11,983 million bushels as an increase in expected beginning stocks more than offsets lower production.
Feed and residual use for 2011/12 is lowered 150 million bushels based on the record level of crop maturity and harvest progress as of Sept. 1. Early new-crop corn use is expected to displace use of 2011 old-crop corn and boost old-crop inventories on Sept. 1.
Total U.S. corn use for 2012/13 is raised this month to 11,250 million bushels, with higher expected feed and residual disappearance more than offsetting lower projected exports.
The projected season-average price for corn was reduced $0.30 on each end of the range to $7.20 to $8.60 per bushel. World 2012/13 coarse grain production is reduced this month, mostly due to drought in the European Union, cutting corn prospects. Forecast for corn exports from South America are increased.