U.S. corn supply projections for 2013-2014 are lowered 125 million bushels this month. With acreage unchanged, the 1.5 bushel-per-acre decline in yield results in forecast production of 14.0 billion bushels and total supply of 14.8 billion.
Forecast total use is down 70 million bushels this month to 12.9 billion. Feed and residual use is lowered 125 million bushels to 5.2 billion.
Corn use for ethanol is increased 50 million bushels to 4.9 billion, reflecting expectations for favorable ethanol producer margins and high renewable identification number (RIN) prices, which will also impact production prospects for 2013-2014. Changes in high-fructose corn syrup, glucose and dextrose, beverage and manufacture, and cereals and other products total 5 million bushels and result in a total FSI increase of 55 million bushels from last month’s projection.
The resulting ending stocks are forecast 55 million bushels lower this month at 1.9 billion, compared with 769 million forecast for 2012-2013.