USGC Confident in Supply of US Feed Grains


The U.S. Department of Agriculture on Friday released its World Agricultural Supply and Demand Estimates (WASDE) reflecting the third-largest corn crop and yield on record. While this month’s report lowers U.S. corn yield and production estimates from the previous month, U.S. Grains Council President and CEO Thomas C. Dorr said these market challenges will be addressed.

“U.S. 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 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 U.S. 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 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 U.S. DDGS so far this calendar year with an anticipated increase to more than 3 million tons in 2011.

“This week, more than 500 producers, suppliers, importers and end-users of U.S. DDGS and coarse grains from around the world gathered in Chicago to discuss the rapidly evolving distiller’s grains market. This indicates to me the firm commitment to the production and use of this high-quality protein product,” said Dorr.

Source:  U.S. Grains Council

Posted by Haylie Shipp


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