Projected U.S. 2017/18 feed and residual use for the four feed grains (corn, sorghum, barley, and oats) and wheat is projected at 148.9 million metric tons this month, 2.5 million lower than last month’s 151.4 million on a September-August marketing year basis. The change is based on a lower projection for wheat.
World coarse grain production for 2017/18 is reduced 2.3 million tons this month to 1,321.9 million. Most of the decline is in Argentine corn, down 3.0 million tons to 39.0 million, although Ukrainian corn added 0.9 million tons to the global reduction.
U.S. corn is price competitive compared with corn from other major suppliers. Furthermore, export prospects for Argentina and the Ukraine have been tempered, increasing opportunities for U.S. shipments.
Projected U.S. corn exports are raised 125 million bushels to 2.05 billion based on improved prospects for U.S. shipments due to competitive pricing and lower production in some major exporting countries. The higher use reduces stocks by the same amount, but stocks are still at historically high levels. The corn price is projected $0.05 higher this month at $3.30 per bushel based on marketings to date.
The sorghum, barley, and oats balance sheets are unchanged this month.