Corn Stocks Lower On Ethanol Demand

U.S. ending stocks declined from the previous month for new crop corn, on higher projected ethanol use and a projected increase in exports, respectively, according to USDA’s World Agricultural Supply and Demand Estimates. Total U.S. corn use for 2010-11 was projected at 110 million bushels, higher than the previous month, reflecting a 100 million bushel increase in projected ethanol use. This lowered projected corn ending stocks for 2010-11 by 245 million bushels from the previous month, to 1.573 billion bushels.

The season-average farm price for corn is projected 10 cents higher on both ends of the range to $3.30 to $3.90 per bushel. U.S. corn use for old crop was projected 135 million bushels higher than the previous year on a 150 million bushel increase in corn for ethanol. Feed and residual use was lowered 25 million bushels with increased availability of distillers’ grains.

Old crop corn ending stocks were projected 135 million bushels lower. At 1.603 million bushels, ending stocks would be down 70 million from 2008-09. The projected 2009-10 farm price for corn was lowered 5 cents on both ends of the range to $3.45 to $3.65 per bushel.

Projected global new crop corn production was raised 700,000 tons. USDA also projected a 10-million-bushel increase in projected U.S. sorghum exports for old crop.