October 12, 2012

USDA releases new forecast for 2012 grain supplies

The October USDA World Supply and Demand Estimates (WASDE) report forecasts what many livestock producers have been expecting: a declining corn yield and lower U.S. feed grain supplies. Overall, global corn feeding is down 1.4 million tons.

More WASDE predictions:

– 2012/2013 average soybean price lowered by $0.75

– U.S. corn exports are lowered due to slow sales and competition from Brazil

– Global sorghum production is raised 0.7 million tons with small increases for Australia, the United States, and several African countries

– 1.8-million-ton reduction in world barley output mostly on smaller crops in Australia and Canada, and a 0.5-million-ton reduction for oats with a smaller crop in Australia

– Global rice consumption is raised 0.9 million tons to a record 468.6 million, with most of the increase in China, India, and Nigeria, partially offset by decreases for Bangladesh, Egypt, and Tanzania

– Global rye production is raised 0.5 million tons with an increase for EU-27

– For 2012, the total meat production forecast is reduced on lower beef and broiler production forecasts, although pork and turkey are forecast higher.

– Price forecasts for butter, cheese, nonfat dry milk, and whey are raised from last month

Read the full WASDE report: http://www.usda.gov/oce/commodity/wasde/

Read expert analysis on AgWeb.com: http://www.agweb.com/blog/Farmland_Forecast_148/

Watch ASAS web chat in “Grain pricing and effects on animal agriculture:” http://asas.org/publications/web-programming/webchats