The June 30 Acreage report showed planted and harvested area to be down from last year for corn, sorghum, and oats, while that for barley increased from 2007. Slight adjustments were made in feed grain use this month to reflect June 1 stocks.

The resulting changes raised 2007/08 ending stocks and 2008/09 supplies, but 2008/09 ending stocks are expected to remain at relatively low levels. Forecast 2008/09 prices for all four feed grains were raised this month as competition from soybeans for 2009 acres is expected to support corn prices in the new marketing year.

Global production up
Global coarse grain production is up 1.5 million tons this month to 1,069.0 million, as foreign increases more than offset the U.S. decline. World corn production is unchanged this month at 775.3 million tons with increases and decreases offsetting.

World production increases for millet, barley, and sorghum more than offset small reductions in production for oats and rye. The largest increase this month in 2008/09 projected coarse grain production is for the EU-27, up 2.1 million tons to 151.4 million.

Corn production prospects are up 1.3 million tons to 57.5 million due to increased area in France. Projected barley production is up 0.8 million tons to 60.8 million, with better-than-expected yields reported in Spain, France, Finland, and Hungary more than offsetting lower yields in Poland and Germany.

For the full report go to Feed Outlook