USDA didn’t make any drastic changes to the balance sheets for corn, soybeans or wheat but feed grain supplies remain well below year ago levels.
Pete Lorenz, Senior Market Analyst at National Farmers Organization, tells Brownfield feed supplies will stay tight for the foreseeable future, “As it stands right now, supplies of all feed grains are going to be real tight until we get a new crop of wheat. That’ll take some of the pressure off but current crop conditions don’t really favor that, so it may be fall until we really see an adequate of feed grains available to the marketplace.”
Lorenz adds soybean meal demand could increase due to that tight supply of feed grain, “It’s just a matter of getting enough protein. We’re using meal and obviously DDGs and I think DDG supplies are going to tighten up because there are a number of ethanol plants that have shut down basically for lack of margin or available corn and that’ll put more demand on meal.”
USDA’s next set of supply and demand estimates is out March 8.