Feed and residual use of feed grains tends to decrease when corn prices rise

Feed and residual use of feed grains tends to decrease when corn prices rise

Feed use of corn is estimated by USDA in the "feed and residual use" accounting category, which is used to balance corn supply and demand. Feed and residual use is equal to total supply minus all other (non-feed-and-residual) uses minus ending stocks. The price of corn is one factor that can affect feed and residual use. Economic theory suggests that feed use of feed grains would decrease if the price of corn rose. This chart shows historical data for total feed grains feed and residual use and the real corn price, and a general negative relationship is illustrated. This chart is found in Implications of an Early Corn Crop Harvest for Feed and Residual Use Estimates, FDS-12f-01, July 2012.


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