by Pops » Mon 12 May 2008, 14:25:58
I mentioned this a couple weeks ago in another thread. Here is corn section of the USDA supply and demand report from Friday:
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')COARSE GRAINS: The 2008/09 U.S. feed grains outlook is for lower production, strong domestic demand, and lower ending stocks. The 2008/09 corn crop is projected at 12.1 billion bushels, down 7 percent from the record 2007/08 crop. Planted area is from producer intentions reported in Prospective Plantings. Harvested area is based on historical abandonment and derived demand for silage. The yield is projected at 153.9 bushels per acre, 1 bushel per acre below the 1990-2007 trend
WASDE-458-2 based on the slower-than-average pace of planting as reported in Crop Progress. The projected yield assumes a mid-May planting progress near the 10-year average and reflective of last year’s May planting pace. Corn supplies fall 870 million bushels from the 2007/08 record with a small increase in carryin more than offset by the projected 949-million-bushel reduction in output. Higher year-to-year
beginning stocks reflect this month’s 100-million-bushel reduction in 2007/08 corn use for ethanol.
Total U.S. corn use in 2008/09 is projected down 2 percent as reductions in feed and residual use and exports more than offset a continued expansion in ethanol production. Feed and residual use is
projected down 14 percent as corn feeding declines with increased production of distillers grains, higher corn prices, and reduced red meat production. Corn exports are projected down 16 percent as
U.S. supplies face increased world competition with increased foreign production and a sharp drop in EU-27 imports. Ethanol use is projected at 4 billion bushels, up 33 percent from 2007/08. The slowing
pace of plant construction and expansion, and lower capacity utilization are expected to modestly dampen growth in ethanol corn use. With total corn use expected to exceed production by 635 million bushels, ending stocks are projected down 45 percent. At 763 million bushels, ending stocks would be the lowest since 1995/96. The season-average price is projected at $5.00 to $6.00 per bushel, well above the current year’s forecast record of $4.10 to $4.40 per bushel.
Global coarse grains production for 2008/09 is projected at 1.1 billion tons, up slightly from the current year record, despite the year-to-year decline in U.S. corn output. Foreign coarse-grain production is
expected to increase 4 percent from 2007/08. World coarse grain output reflects year-to-year increases in projected corn production in Argentina, Brazil, China, EU-27, and FSU-12. World coarse
grain output is also boosted by a recovery in barley production in Australia, EU-27, and FSU-12.
Global coarse grain imports and exports are projected to decline in 2008/09 mostly reflecting lower EU-27 corn and sorghum imports and lower U.S. corn exports. Global coarse grain feeding is projected
lower with declines in U.S. corn feeding more than offsetting the increase in foreign corn feeding.
World coarse grain ending stocks are projected to fall 6 percent as declines in U.S. corn ending stocks more than offset increases elsewhere. At the projected 99.0 million tons, 2008/09 global corn ending stocks are expected to hit a 25-year low.
USDA
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)