WASHINGTON, September 18 2012- Higher projected corn carryin boosts U.S. corn supplies despite declined production, according to an Economic Research Service Feed Outlook report.
“With imports unchanged, higher carryin offsets production declines, resulting in higher projected supply,” according to the report. “At 11,983 million bushels, projected supply is 108 million greater than last month’s projection and 1.5 million bushels below the last marketing year.”
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. 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, according to the report.
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.
“The current yield is the lowest since 1995/96, and production is forecast to be the lowest since 2006/07 when 18.1 million fewer acres were planted,” stated ERS.
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, while 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 September 1, stated the report.
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.
Also, ERS reports the projected season-average price for corn reduced $0.30 to $7.20 to $8.60 per bushel.
The world 2012/13 coarse grain production is reduced this month, mostly due to drought in the EU, cutting corn prospects, while forecast corn exports from South America are increased.
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