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USGC Confident in Adequate Supply of Feed Grains

by 5m Editor
11 October 2010, at 10:44a.m.

US - The US Department of Agriculture on Friday, 8 October, released its <em>World Agricultural Supply and Demand Estimates (WASDE)</em> reflecting the third-largest corn crop and yield on record.

While this month’s report lowers US corn yield and production estimates from the previous month, US Grains Council President and CEO Thomas C. Dorr said these market challenges will be addressed.

“US farmers have always responded to market signals and have been able to produce an adequate supply to meet market demand. This has established the United States’ position in the global marketplace as a reliable, long-term supplier of coarse grains and co-products,” said Mr Dorr.

In 2008, the United States produced 12.1 billion bushels with an average yield of 153.9 bushels per acre. Today, WASDE forecasts 12.7 billion bushels with an average yield of 155.8 bushels per acre.

“The Council does not anticipate these production levels will dramatically alter the US position in the global marketplace in the long-term. In the short-term, however, it will have an effect on price and we need to be sensitive to that,” said Mr Dorr.

Increased consumption for ethanol use resulted in the simultaneous creation of more than 30 million metric tons of distiller’s dried grains with solubles (DDGS), a high-value feed product for domestic and international livestock producers. Initial 2010 export projections of 6.2 million tons of DDGS will be surpassed this calendar year as the United States gears up to export approximately 8 million tons. China alone captured more than 2.5 million tons of US DDGS so far Mr Dorr.