January 16, 2008

US corn production for 07-08 lower than previous month

The US corn production for 2007/08 was lowered 94 million bushels this month to 13,074 million bushels.

The decline was caused by a 16,000-acre decrease in planted area, a 471,000-acre increase in harvested area and a 1.9-bushel-per-acre decrease in yield.

Beginning stocks were lowered fractionally, and total supply is now projected at 14,393 million bushels.

Domestic consumption of corn was increased by 265 million bushels this month to 10,505 million bushels, up from 9,086 million bushels in 2006/07.

Meanwhile, projected feed and residual use was raised 300 million bushels due to increased numbers of livestock expected to be produced during 2008 and large use during the first quarter of the corn marketing year.

Corn used for fuel alcohol production in September-November 2006 was estimated at 630 million bushels, up from 465.9 million bushels in the same period a year ago.

From September to October, ethanol production has escalated on a per day basis when compared to August. New ethanol plants have sprouted in the US and are expected to boost alcohol production and corn usage during the remainder of 2007/08, leaving annual corn use for ethanol unchanged this month.

Corn exports in 2007/08 are forecast at 2,450 million bushels, the same from last month, based on the pace of sales to date and first quarter trade data. Total corn use for 2007/08 was up 265 million bushels this month, and up 1,745 million bushels from 2006/07.

Corn ending stocks for 2007/08 are projected to be lower at 359 million bushels from last month but up 134 million bushels from 2006/07.