Strong futures prices and their expected impact on the unsold portion of this year's crop have increased forecast prices of sorghum and corn by 10¢ at both ends of the range from $2.90 to $3.30/bu.
That's according to the monthly "Feed Outlook" issued by the Economic Research Service last week. Analysts there note, "Feed grain supplies for 2006-2007 are unchanged from November, and are down 16.4 million metric tons from 2005-2006. The year-to-year supply decrease reflects lower production and beginning stocks as compared with last year. Imports are expected to be higher in 2006-2007, but still account for only a small share of supply at the projected 2.4 million metric tons."