ddddddddddddddddddddddddddddddddddddddFood, seed, and industrial (FSI) use of corn in 2004/05 is expected to total 2.68 billion bushels, unchanged from last month, USDA noted today in its monthly Feed Outlook Report. In 2003/04, FSI use is expected to total 2,565 million bushels, up 10 million from last month because of a 10-million-bushel increase in starch use.
In 2004/05, FSI use, if realized, would represent 25 percent of total use, the same as the previous 2 years. FSI use in 2003/04 is expected to increase for all estimated uses, but corn used to produce ethanol shows the largest increase.
Based on the monthly ethanol production reported by the Energy Information Administration in the Department of Energy, corn used to make ethanol in 2003/04 was estimated up 20 percent from the 995 million bushels used in 2002/03. Gasoline prices have increased sharply from last year and have raised prices for ethanol. With California, New York, and Connecticut banning MTBE, demand has been strong, but prices did weaken slightly as imported ethanol has become competitive even with the tariff to offset the blender credit. Imported ethanol has a 54-cent tariff applied that compensates for the 54-cent blender credit that companies that blend ethanol and gasoline can claim.
Imports September 2003 through May 2004 totaled 34.9 million gallons from Brazil, another large ethanol (from sugarcane) producer, up 487 percent from the same period a year earlier.
Corn used for HFCS production in September 2003-May 2004 was essentially unchanged from the same period in 2002/03. Since HFCS is used in soft drinks, the June-August quarter is usually the strongest, and yearly production is expected to be up 1 percent. In 2004/05, corn used for HFCS production is expected to increase 1 percent from the forecast 535 million bushels used in 2003/04. Corn used to make glucose and dextrose during September 2003-May 2004 was up 5 percent from the same period a year earlier and is expected to be up 3 percent for the year-over-year total. In the first three quarters of the 2003/04 corn marketing year, corn used for starch production has been up 6 percent from the same period in 2002/03. Corn starch is used in paper manufacturing and to make wallboard, both products that increase when the economy is expanding. For all of 2003/04, corn used to make starch is expected to increase 6 percent from 2002/03.
For other highlights of USDA's Feed Outlook report, use this link. (NOTE: The link takes you to a pdf document.)
http://usda.mannlib.cornell.edu/reports/erssor/field/fds-bb/2004/fds04f.pdfPro Farmer:
