The U.S. Department of Agriculture (USDA)’s Prospective Plantings and Grains Stock Reports, released yesterday, makes clear that U.S. farmers are eager to bounce back from the drought that crippled production in 2012. The report projects that, “If realized, corn will represent the highest planted acreage in the United States since 1936 (102 million planted acres) and for soybeans the fourth highest acreage on record.” If favorable weather permits a return to trend yields, 2013 could be another record harvest year for corn. See the U.S. Grains Council Chart of the Week for details.

In addition, the current USDA Grains Stock report indicates that current socks of corn equal 137.17 million metric tons (5.4 billion bushels), up from the previously estimated 127 million tons (5.0 billion bushels). Current stocks account for all the corn in the country available for use in feed, industrial processing and ethanol production until the next harvest. U.S. stocks are likely to be further supplemented by corn imports from South America.

The higher-than-expected current stocks number suggests that U.S. feed use is slowing down, due to high prices. While exports and industrial use are measured directly, feed use is not measured by USDA. “This means the stocks number is the best indirect method available for estimating corn feed use,” said Erick Erickson, USGC director of global strategies. “We know exports and industrial use including ethanol. We know supply. When we develop the stocks estimate, the unaccounted corn is feed and residual use.”