Projected corn feed and residual was reduced by 50 million bushels this month to 4.55 billion, reflecting lower June-August feed and residual use expectations. Attractive winter wheat prices and abundant supplies are expected to result in increased wheat feed use. Also, the early planting and emergence of corn indicates there will likely be early harvest and use of new-crop corn before the September 1 beginning of the 2012/13 marketing year, boosting old-crop ending stocks. As a result, ending stocks are increased to 851.1 million bushels from last month’s 801.1 million. There were no changes to the sorghum, barley, and oats balance sheets.
This month’s 2011/12 farm corn price range was reduced 5 cents on the low end of the range and 15 cents on the high end of the range, leaving the projected range at $5.95 to $6.25 per bushel. Marketings of new-crop corn late in the 2011/12 marketing year are likely to put downward pressure on prices during the final quarter (June-August) of the marketing year. The projected sorghum farm price range was reduced 5 cents on the low end and 15 cents on the high end for a projected range of $5.85 to $6.15 per bushel as lower corn prices are expected to be reflected in other feed grain markets. The barley farm price was lowered 5 cents to $5.30 per bushel. Abundant supplies of barley from Canada, reduced demand for malting barley in beer, and lower corn prices are behind the decrease. The oats price was unchanged at $3.45 per bushel.
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