WASDE: Corn Supplies Lowered 442 Million Bushels

September 12, 2011 02:56 AM

U.S. feed grain supplies for 2011/12 are projected lower this month with reduced corn production as summer heat and dryness continue to be reflected in survey-based yield forecasts.  Corn production for 2011/12 is forecast 417 million bushels lower with expected yields down from last month across most of the Corn Belt.  The national average corn yield is forecast at 148.1 bushels per acre, down 4.9 bushels from August and 16.6 bushels below the 2009/10 record.  As forecast, this year’s yield would be the lowest since 2005/06.  Despite the lower yield, production is forecast to be the third highest ever with the second highest planted area since 1944. 

Total corn supplies for 2011/12 are lowered 442 million bushels with a 20-million-bushel reduction in carryin and a 5-million-bushel reduction in expected imports.  Beginning stocks for 2011/12 drop with small increases in 2010/11 exports and use for sweeteners reflecting the latest available data.  Imports for 2011/12 are reduced with the smaller forecast corn crop in Canada.  Supplies for 2011/12 are projected to be the lowest since 2006/07.

Total corn use for 2011/12 is projected 400 million bushels lower with tighter supplies.  Projected feed and residual use is reduced 200 million bushels mostly reflecting lower expected residual disappearance with the smaller forecast crop.  Corn use for ethanol is projected 100 million bushels lower with higher expected corn prices and continued weakening in the outlook for U.S. gasoline consumption as forecast by the Energy Information Administration.  Corn exports for 2011/12 are projected 100 million bushels lower with increased supplies and exports expected from Ukraine, Argentina, and Brazil.  U.S. ending stocks are projected 42 million bushels lower at 672 million.  The stocks-to-use ratio is projected at 5.3 percent, compared with last month’s projection of 5.4 percent.  The season-average farm price is projected 30 cents per bushel higher on both ends of the range to a record $6.50 to $7.50 per bushel.

Global coarse grain supplies for 2011/12 are projected 3.1 million tons lower with larger barley, sorghum, millet, and oats supplies only partly offsetting the reduction for corn driven by the U.S. changes.  Global corn supplies are reduced 4.5 million tons as increases in foreign beginning stocks and production partly offset the reduction in U.S. supplies.  Projected global corn production for 2011/12 is lowered 5.9 million tons as a 4.8-million-ton increase in expected foreign output is outweighed by the 10.6-million-ton U.S. reduction.  Brazil and Argentina production for 2011/12 are raised 4.0 million tons and 1.5 million tons, respectively, on higher expected area with rising returns for corn in both countries.  Ukraine corn production is raised 1.5 million tons based on indications for higher yields.  Production is raised 1.0 million tons for EU-27 with higher expected yields in France and several countries in Eastern Europe.  Production is lowered 1.0 million tons for Canada based on the latest Statistics Canada estimates.  Production is also lowered 2.1 million tons for Egypt as lack of government restrictions on planting resulted in a sharp shift in acreage away from corn and into rice.

Global coarse grain trade for 2011/12 is raised slightly with increased foreign trade in barley and corn more than offsetting the reduction in U.S. corn shipments.  Barley imports are raised for Saudi Arabia and Syria with larger shipments expected from Ukraine and Russia.  Corn exports are raised for Ukraine, Argentina, Brazil, and EU-27.  Corn exports are lowered for Canada and Paraguay.  Global corn consumption for 2011/12 is lowered 7.3 million tons, mostly reflecting lower expected use in the United States.  Foreign corn feeding and consumption are nearly unchanged.  World corn ending stocks are projected up 2.9 million tons with increases in South America, Ukraine, and EU-27 more than offsetting the reduction projected for the United States.

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