News 144 views last update:6 Aug 2012

US revises its raw materials projections

USDA recently issued revised projections for the 2006-2007 maize and soybeans. This is necessarry due to the higher demand for raw materials, primarly for the ethanol industry.

The maize crop will be reduced by 4% compared with the 2005-2006 season with 318.1 million metric tons available. Feed and industrial uptake will increase by 5% but diversion to ethanol will escalate by 35%, representing 17% of the anticipated supply.
Maize exports will show a moderate increase of 5%. The net result of increased demand relative to supply will be a 50% reduction in ending stock to 23.4 million metric tons and a commensurate increase in average farm price by 30% to €94.80/metric ton.

More soybeans in 2007
The total supply of soybeans will increase by almost 10% as a result of a 5% increase in area planted but with no increase in average yield. It is anticipated that domestic use of soybeans for feed and industry will increase by less than 1% allowing for a 21% increase in exports. The average price of soybeans for the 2006-2007 harvest will be approximately 3% lower than the previous year at € 220.60/metric ton. (Simon Shane)

Forecast values for production and disposition covering the 2006-2007 growing season are tabulated below:




31.44 m Ha

30.24 m Ha


9.43 mtons/Ha

1.17 mtons/Ha

Production + Inventory

318.1 m mtons

99.5 m mtons

Animal Feed

151.2 m mtons


Industrial & Domestic use

88.5 m mtons

4.6 m mtons

Ethanol production (maize)

53.8 m mtons


Crushing and extraction (soy)


48.4 m mtons


55.0 m mtons

31.1 m mtons

End Stock

23.4 m mtons

15.4 m mtons

Average Forecast ex-Farm Price

€94.80 / mton


Conversion factors: 1 bu. Maize = 25.0 kg 1 bu. soybeans = 27.2 kg

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