USDA Corn Stocks Raise Questions About Livestock Feed Estimates

Larger-than-expected U.S. corn inventories are raising questions about Agriculture Department estimates of how much grain livestock producers are feeding.

Reuters reports USDA may revise its estimate of corn used for livestock feed and residual purposes during the 2025-26 marketing year after September grain stocks exceeded expectations.  USDA previously estimated feed and residual use at 6.35 billion bushels.  However, its September 30th report showed more than two billion bushels of corn remaining in storage, up 35% from a year earlier.

Analysts question whether feed consumption was overstated, particularly with the nation's cattle herd near its smallest level in 75 years.  Unlike exports and ethanol production, livestock feed consumption is not directly measured.

USDA calculates feed and residual use after accounting for other uses and inventories.  The uncertainty comes as USDA prepares its October crop production and supply-and-demand estimates, which could significantly influence grain prices and marketing decisions.

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