WASDE: Corn Stocks Lowest Since 1995-96

September 10, 2010 03:03 AM

COARSE GRAINS: Projected U.S. feed grain supplies for 2010/11 are lower this month with lower carryin and reduced production for corn and sorghum. Beginning stocks for corn are projected 40 million bushels lower with higher 2009/10 corn use for ethanol and a small increase in exports.

Corn production for 2010/11 is forecast at 13,160 million bushels, down 205 million, but still the largest crop on record. The national average yield is forecast at 162.5 bushels per acre, down 2.5 bushels. The largest reductions in forecast yields are for the eastern Corn Belt, which account for more than half of the reduction in total output.
Domestic corn use for 2010/11 is lowered 100 million bushels with lower expected feed and residual use as higher prices trim feeding demand and the smaller crop reduces residual disappearance. Projected exports are raised 50 million bushels with rising world demand for coarse grains, particularly corn. U.S. corn ending stocks are expected to decline to 1.1 billion bushels, down 196 million bushels. At this level, 2010/11 carryout would be the lowest since 2003/04. Stocks as a percentage of total use would be the lowest since 1995/96. The season-average farm price is projected at $4.00 to $4.80 per bushel, compared with $3.50 to $4.10 last month.
Other 2010/11 feed grains changes include lower projected ending stocks for sorghum and oats. Sorghum production is forecast 7 million bushels lower. Sorghum exports are raised 10 million bushels with stronger world demand for coarse grains. Sorghum feed and residual use is lowered 10 million bushels. Oats imports are lowered 10 million bushels with lower expected production in Canada.
Global coarse grain supplies for 2010/11 are projected down 8.7 million tons with reduced foreign and U.S. production. Most of the foreign reductions this month are in EU-27 and FSU-12 countries. A 10.3-million-ton reduction in world coarse grain production for 2010/11 is partly offset by larger corn beginning stocks for Brazil with a 1.8-million-ton increase in 2009/10 corn production. Lower U.S. and EU-27 corn production account for more than half of the reduction in 2010/11 global coarse grain output. EU-27 corn production is reduced 1.2 million tons with lower reported area and yields for France and Germany and lower reported yields for Italy, Austria, and Spain. World barley production is lowered 2.0 million tons with reductions for Russia, EU-27, Belarus, and Morocco. World oats production is reduced 0.9 million tons with lower production for EU-27, Canada, and Belarus. Lower rye production in EU-27 and Belarus lowers world output 1.0 million tons.
Global coarse grain trade is increased this month with U.S. corn exports raised 1.3 million tons. A 0.5-million-ton reduction for EU-27 corn exports is offset by a 0.5-million-ton increase for Ukraine. Corn imports are raised 2.0 million tons for EU-27 as corn partly replaces wheat in feeding. Russia corn imports are raised 0.7 million tons helping to offset reduced supplies of feed barley. Global corn consumption is lowered as reduced prospects for corn feeding in the United States and Ukraine more than offset higher expected corn feeding in EU-27, Russia, Mexico, and Canada. Global corn ending stocks are projected 3.6 million tons lower.

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