10 June 2010 18:43 [Source: ICIS news]
HOUSTON (ICIS news)--The US Department of Agriculture (USDA) on Thursday raised its projection of US corn to be used for ethanol in the 2010/11 crop year by 150m bushels to reflect record ethanol production.
The USDA raised its estimate of corn to be used for ethanol to 4.7bn bushels.
Higher corn use for ethanol cited by the USDA in its June World Agriculture Supply and Demand Estimates (WASDE) report reflected the continued record pace of ethanol production and use through March based on the latest data from the Energy Information Administration (EIA).
Higher ethanol production was also supported by record production of gasoline blends with ethanol as indicated by weekly data from the Energy Information Administration (EIA) through May, and forecasts for rising gasoline demand during the summer driving season, the USDA said.
Corn use was also raised 5m bushels each for starch and glucose/dextrose as the gradual economic recovery spurred production of these products, the report said.
Higher use, combined with lower beginning stocks, dropped projected 2010/11 corn ending stocks by 245m bushels to 1.573bn, the WASDE report said.
The season-average farm price for corn was projected 10 cents higher from the May report on both ends of the range to $3.30 to $3.90/bushel.
US corn use for 2009/10 crop year was projected 135m bushels higher as increased feed, seed and industrial use more than offsets a reduction in expected feed and residual use.
US corn ending stocks for 2009/10 are projected at 1.603bn bushels, down 70m from 2008/09.
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