April 10, 2010

 

 

Less corn than expected is being turned into livestock feed, so the forecast for corn ending stocks in the 2009-10 marketing year will be higher, according to the USDA.

 

With the 100,000 bushels less than expected going toward feed and residual use, the USDA said in its monthly World Agricultural Supply and Demand Estimates report, ending stocks are now predicted to reach about 1.9 billion bushels, up from last month's forecast of about 1.8 billion.

 

The 2009-10 marketing year for corn ends August 31.

 

Recent data shows very strong corn-based ethanol production in January, the USDA said, but that will not help raise forecasts for domestic corn usage or help reduce ending stocks in 2009-10.

 

"Poor margins for ethanol producers and rising ethanol stocks limit near-term growth in production, despite strong price incentives for blending with a large discount for ethanol compared with gasoline," the USDA said. "The lack of growth in gasoline consumption is likely constraining ethanol usage."

 

The USDA on Friday left its 2009-10 forecast for ethanol corn usage unchanged at 4.3 billion bushels.