USDA
Increases Corn Use Projection for 2004-05, NCGA Notes (5-12-04)
Use of corn is expected to increase considerably in
the 2004-05 marketing year, largely due to the expanding ethanol market
and an uptick in exports, according to today’s U.S. Department
of Agriculture (USDA) World Agricultural Supply and Demand Estimates
(WASDE) report.
Use of corn is expected to increase considerably in
the 2004-05 marketing year, largely due to the expanding ethanol market
and an uptick in exports, according to today’s U.S. Department
of Agriculture (USDA) World Agricultural Supply and Demand Estimates
(WASDE) report.
Food, seed and industrial use is expected to increase
by 125 million bushels, with ethanol production accounting for 105
million bushels. Nearly 10 percent of the U.S. crop will be used in
ethanol production, the report states.
“We’re seeing remarkable demand for corn
right now in the ethanol industry,” said National Corn Growers
Association (NCGA) CEO Rick Tolman. “One in every ten rows of
corn is going into ethanol production. And with exports increasing
and continued strong demand from the livestock industry, the market
is very strong.”
U.S. corn exports are expected to increase by 50 million
bushels to 2.1 billion. Projected feed and residual use declines slightly
due to lower expected fed cattle and hogs and increased use of ethanol
byproducts, the report says.
“The report illustrates the strong demand for
corn worldwide and the improving export outlook for U.S. feed grains,"
said Doug Boisen, chair of the NCGA-USGC Joint Trade A-Team. "Declining
stocks and increased consumption within China is helping to drive
the export market. In fact, according to the report, corn for production
of starch, alcohol, and other products is surging. This is good news
for U.S. corn growers and will help us regain market share in Asia
while developing new markets in other regions.”
Total corn production is projected to rise by 3 percent
compared to last year, according to the report. Due in large part
to faster-than-normal planting progress this spring, the agency expects
a record crop of 10.425 billion bushels. But even with a record crop,
use is expected to exceed production, and 2004-05 ending stocks are
projected down 65 million bushels.
The projected price range for corn is $2.55 to $2.95
per bushel, up from the agency’s estimate of $2.45 to $2.55
for the 2003-04 marketing year.
To view the WASDE report, click
here.