USDA May Feed Outlook: Tight Supplies Mean Higher Prices For Upcoming Marketing Year

Fewer planted acres and delayed planting progress are expected to constrain U.S. corn production in marketing year (MY) 2022/23 to the tune of 621,780 bushels, or a 4.3% decline.

The lower production projection of 14.43 billion bushels means tighter supplies and higher prices, according to the May USDA Economic Research Service (ERS) report on the outlook for feed.

Coarse grain exports for the world excluding Ukraine in 2022/23 (October-September international trade year) are actually forecast about 7 million tons higher because of other countries boosting production.

While lower projected corn output and robust domestic demand in the United States will limit exportable U.S. supplies of corn, a virtual absence of competition from Ukraine is expected to benefit U.S exports.

For the full report from the U.S. Department of Agriculture (USDA), click here.