USDA lowered its forecast of corn use for ethanol production in the marketing year that began Sept. I to 3.3 billion bushels from its previous forecast of 3.4 billion bushels.

“Ethanol use is lowered based on indications of declining plant capacity utilization and a slower than expected pace of start-ups,” says the agency in its latest World Supply and Demand report.

USDA estimated ethanol plants used 2.1 billion bushels of corn in the marketing year ended Aug. 31 and used 1.6 billion bushels the previous year.