COARSE GRAINS: This month’s 2016/17 U.S. corn outlook is for lower production, reduced feed and residual use, increased corn used to produce ethanol, and smaller stoc ks. Corn production is estimated at 15.148 billion bushels, down 78 million from last month on lower harvested area and a reduction in yield to 174.6 bushels per acre. Imports are raised ased on the pace of corn imports through November. Feed and residual use is lowered 50 million bushels to 5,6 00 million based on the smaller crop, increased corn used to produce thanol, greater sorghum feeding, and indicated disappearance during September-November as reflected by the Deceber 1 stocks. Corn used to produce ethanol is raised 25 million bushels to 5,325 million based on the most recent d ta from the Grain Crushings and Co-Products Production report which estimat d the amo unt of corn used to pr oduce etha nol during September-November to be recor d high. With supply falling faster than use, corn ending stocks are lowered 48 million bu shels from last month . The projected range for the sea son- verage corn price received by p oducers is raised 5 cents on bot ends to $ 3.10 to $3. 0 per bushel.
Sorghum poduction for 2016/17 is estimated 18 milli n bushels higher on increases in both arvested area and yield. Grain sorghum prices are projected to a verage $2.65 to $3.1 per bushel, down 15 cents at the midpoint reflecting the weakening relationship to corn prices in interior markets.
Global coarse grain production for 2016/17 is forecast 1.7 million tons lower to 1,327.7 million. This month’s 2016/17 foreign coarse grain outlook is for marginally lower production, higher consumption, and increased trade relative to last month. Serbia corn production is raised reflecting the latest information from the Foreign Agricultural Service office in Belgrade. Partly offsetting is lower corn production for Bolivia where the impact of a severe drought during the growing season was worse than previously expected. Russia barley production is lowered based on the latest government statistics. Argentina barley production is lowered on dryness in southern Buenos Aires province during crop heading and grain fill in November and December.