January 15, 2009

Domestic use of US corn in 2008-09 has been reduced 185 million bushels to 10,200 million bushels due to lower demand. 

Projected feed and residual use is reduced 50 million bushels to 5,300 million, reflecting lower livestock feeding and low September-November disappearance as indicated by December 1 stocks.

FSI use is lowered 35 million bushels, with corn used for sweeteners and starch in the first quarter being lower than expected due to poor economic conditions.

Corn used for fuel alcohol production in September-November 2008 is seen at 900 million bushels, up from 644 million bushels in the same period a year ago.

Projected 2008-09 corn use for ethanol is reduced 100 million bushels this month to 3,600 million bushels.

Total corn use for 2008/09 is projected down 235 million bushels, which is down 787 million from last year. Corn ending stocks for 2008/09 are expected to be 1,790 million bushels, up 316 million bushels from last month due to lower use. With increased ending stocks, the 2008/09 season average farm price projection is lowered 10 cents on both ends of the range to US$3.55 to US$4.25 per bushel.

Corn yield estimates for 2007/08 are lowered 0.4 bushels per acre this month to 150.7 bushels per acre. Production is decreased 36 million bushels to 12,101 million bushels, leading to an offsetting decrease in feed and residual use now at 5,938 million bushels. FSI use is lowered 1 million bushels this month to 4,363 million bushels on lower estimated seed use. Ending stocks for 2007/08 remain unchanged.

In addition, feed grain supplies for 2008-09 are projected at 373.9 million tonnes, down 4 percent last year.