USDA raised its estimate of corn use for ethanol in the 2009/2010 marketing year ending in September by 150 million bushels to 4.55 billion bushels, reports Meatingplace.com. USDA also raised its forecast for use in the 2010/2011 marketing year by 100 million bushels to 4.7 billion bushels.
The USDA predictions were made in its monthly World Agriculture Supply and Demand Estimates report. The increased estimates reflect the continued record pace of ethanol production and usage through March based on the latest data from the Energy Information Administration.
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.
USDA said the increased ethanol use will more than offset reduced feed and residual use, which was lowered by 25 million bushels due to increased availability of distillers' grains.
USDA lowered the projected 2009/10 farm price for corn by 5 cents on both ends of the range to $3.45 to $3.65 per bushel based on prices reported to date. For 2010/11, USDA raised the season-average farm price forecast by 10 cents on both ends of the range to $3.30 to $3.90 per bushel.