June 11, 2010

Corn food, seed, and industrial (FSI) use was projected 110 million bushels higher for 2010/11 dropping ending stocks of 245 million bushels to 1,573 million.

The season-average farm price for corn is projected on both ends of the range US$3.30-US$3.90 per bushel. Projected 2010/11 farm prices for the other feed grains are also raised.

US corn use for 2009/10 is projected 135 million bushels higher as increased FSI use more than offsets a reduction in expected feed and residual use. Corn use for ethanol is raised 150 million bushels reflecting the continued record pace of ethanol production and usage through March based on the latest data from the Energy Information Administration (EIA). Higher ethanol production is also supported by record production of gasoline blends with ethanol as indicated by weekly data from EIA through May and forecasts for rising gasoline demand during the summer driving season. Corn use is raised five million bushels each for starch and glucose/dextrose as the gradual economic recovery spurs production of these products. Feed and residual use is lowered 25 million bushels with increased availability of distillers' grains.

US corn ending stocks for 2009/10 are projected 135 million bushels lower. At 1,603 million bushels, this year's ending stocks would be down 70 million from 2008/09. The projected 2009/10 farm price for corn is lowered on both ends of the range US$3.45-US$3.65 per bushel based on prices reported to date.