US Department of Agriculture (USDA) is projecting lower US corn use, due mostly to reductions in ethanol use and corn exports, reports Southeast Farm Press. Ethanol use was projected 7.5%, or 300 million bushels, lower as prospects for blending above federally mandated levels decline.
According to USDA, financial problems for ethanol producers are reducing plant capacity utilization for existing plants and delaying plant openings for facilities still under construction. Ethanol has also suffered from higher relative prices as gasoline prices have fallen, reducing blender incentives.
USDA forecasts corn exports at 100 million bushels lower, reflecting strong competition from larger foreign grain supplies and the slow pace of sales to date. Projected ending stocks were raised 350 million bushels.
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