December 12, 2008
Ethanol slump pulls down US corn price
A slowdown in ethanol demand may affect US corn farmgate prices and expand the 2008-09 yearend stockpile by 350 million bushels, the government forecast on Thursday (Dec 11).
The US Department of Agriculture expects a stockpile of 1.474 billion bushels when the 2009 crop is ready for harvest, up 350 million bushels, or 31 percent, from its previous estimate.
USDA also lowered its estimate of corn exports by 100 million bushels and corn production for ethanol by 300 million bushels.
This year's corn crop is priced at an average of US$4 a bushel at the farm gate, less than the US$4.20 a bushel average for the 2007 crop.