Projected U.S. 2010/11 and 2009/10 corn used for ethanol was raised this month as ethanol production continues to increase. Feed grain supplies are unchanged in 2009/10, but lower ending stocks reduce supply prospects for 2010/11. Use for ethanol is raised in both years, as ethanol plants have come back on line and production of gasoline blended with ethanol has increased. With increased demand, prices are expected higher in 2010/11.

With reduced production and increased forecast use, world 2010/11 coarse grain ending stocks are projected down 9.6 million tons this month to 191.9 million. Moreover, 2010/11 ending stocks are projected 0.9 million tons lower than beginning stocks, implying that the world will use slightly more than it produces. Global coarse grain ending stocks are expected to be down slightly from those in the previous 2 years but 17 percent larger than in 2007/08.

Source: USDA/ERS