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U.S. Feed Grain Production Declines

Overall U.S. feed grain production for the 2017/2018 season is expected to fall by 102 million bushels, while feed grain exports are expected to fall by 25 million bushels due to a drop in corn yields, according to the U.S. Department of Agriculture (USDA) feed outlook report released in August.

The report also goes on to state that foreign production of corn is expected to fall as well, but coarse grain supplies are expected to increase due to farmers replacing corn with barley, rye, and millet.

U.S. sorghum production is expected to increase but should not offset the decline in corn yields, which are estimated to be 169.5 bushels per acre - 1.2 bushels less than trend-based assessments. However, corn production will remain near record high amounts, following only the 2016 and 2014 harvests.

Meanwhile, feed and residual use for corn, sorghum, barley, and oats is expected to be 148.3 million tons with an increase in grain consuming animal units for the 2017/18 season due to growth in cattle placements.

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