Overnight Developments, Grains Fall As U.S. Grazing Plan Signals Higher Feed Supplies
The entire grains & oilseeds complex is lower overnight pressured by news that the USDA is to allow 24m acres of CRP land in the US to be used for grazing, reducing feed demand.
The move may add as much as 18 million metric tons to feed supplies, the Department of Agriculture said.
Livestock groups have lobbied for government intervention this year to reduce soaring costs of corn and hay, said Dale Schultz, a commodity specialist at livestock-feeding company Gottsch Enterprises in Hasting, Nebraska. The grazing plan will free up as much as $1.2 billion in forage feed supplies, the government said.
The Conservation Reserve Program pays farmers to leave land idle for as long as 10 years to improve soil and water quality.
At 8.00am BST corn was around 3c lower in overnights trade, with wheat down 2-4c and soybeans down 4-5c.
The move may add as much as 18 million metric tons to feed supplies, the Department of Agriculture said.
Livestock groups have lobbied for government intervention this year to reduce soaring costs of corn and hay, said Dale Schultz, a commodity specialist at livestock-feeding company Gottsch Enterprises in Hasting, Nebraska. The grazing plan will free up as much as $1.2 billion in forage feed supplies, the government said.
The Conservation Reserve Program pays farmers to leave land idle for as long as 10 years to improve soil and water quality.
At 8.00am BST corn was around 3c lower in overnights trade, with wheat down 2-4c and soybeans down 4-5c.