Tridge summary
The December Feed Outlook report for 2024-25 reveals a decrease in U.S. corn ending stocks due to increased usage, despite China's weak demand. However, other countries are expected to make up for the shortfall, making U.S. corn the cheapest in the global market. As a result, the U.S. corn export forecast has been raised by 150 million bushels, and the corn-for-ethanol-use forecast has also been increased. Global coarse grains stocks have been reduced due to lower production in various countries, but demand is expected to be higher, particularly from Brazil. Despite a slight yield revision by the USDA, U.S. corn production and supply projections remain high, largely due to beginning stocks. Strong demand from countries like Spain, Ireland, Japan, South Korea, Morocco, Tunisia, Colombia, Guatemala, and Mexico has compensated for China's weak demand.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The December Feed Outlook report shows the 2024-25 U.S. corn ending stocks are reduced on greater use. The 2024-25 U.S. coarse grains supply forecast remains relatively unchanged this month at 447.5 million tons. Although China continues to exhibit weak demand for U.S. corn, alternative destinations are seen purchasing U.S. corn – which competes with Argentina as the cheapest in the global market. Observed census and export inspection shipments (plus outstanding sales to date) contribute to a 150 million-bushel increase in the 2024-25 U.S. corn export forecast. Moreover, elevated but stable domestic gasoline demand continues from the prior year into the early part of 2024-25, along with strong foreign demand for U.S. ethanol. As such, the corn-for-ethanol-use forecast is raised 50 million bushels this month. A minimal change was made to the sorghum balance sheet (imports) this month, and prices remain at parity with corn at $4.10 per bushel. With no changes to U.S. coarse grains ...
Source: Progressivecattle
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