June 11, 2009

 

The US will harvest enough corn this marketing year to meet demand for feed, ethanol and exports, according to US Grains Council (USGC) President Kenneth Hobbie.

 

On June 1, US farmers had planted 93 percent of the 84 million-acre corn crop, the same progress as a year earlier, Hobbie said, citing figures from the USDA.

 

Barley was 87 percent planted, 12-percent lower from last year due to wet conditions in major growing areas, he said.

 

The use of corn for ethanol production will grow to 104 million tonnes in 2009-10 from 94 million tonnes this year, Hobbie said, adding to US consumption of corn-based ethanol will rise to 15 billion gallons by 2015, requiring 127 million tonnes of corn.

 

Corn production is expected to fall to 771 million tonnes from 784 million tonnes while consumption is projected to increase to 792 million tonnes from 777 million tonnes, the International Grains Council (IGC). That would slash ending stocks to 118 million tonnes from 139 million tonnes.

 

Asserting that ethanol is not a major driver for world food prices, Hobbie said rising ethanol production will increase output of byproduct DDGS, which is used in animal feed.

 

In 2015, the US will produce about 36 million tonnes of DDGS and could export as much as 14 million tonnes, he said.