According to the USDA's Feed Outlook report, projected corn use for ethanol is lowered 100 million bushels for 2012/13 and is unchanged for 2011/12. Expansion in the ethanol sector has ended as U.S. fuel consumption edges downward.
The combination of reduced miles driven and increased efficiency in the vehicle fleet results in reduced consumption. Sorghum food, seed, and industrial use is unchanged for 2012/13 and 2011/12. Reduced months of the 2012/13 marketing year when the largest share of the crop is normally delivered to buyers.
click image to zoomSources: USDA, Agricultural Marketing Service, Weekly Grain Market News, and USDA, Economic Research Service, Feed Grains Database.Figure 6. Projected food, seed, and industrial use of corn for 2012/13 slips 105 million bushels, with decreases in corn for ethanol of 100 million bushels and a 5 million bushel reduction in other food, seed, and industrial uses. Corn use for starch is projected slightly lower, but small increases in expected cereal and seed use are partly offsetting. Corn use for starch was lowered and use for cereals and other products was raised slightly. There were no changes in FSI use for 2011/12.
Corn exports for 2012/13 are projected 300 million bushels lower this month to reflect the impact of high prices and increased completion from South America. Projected 2012/13 imports are raised by 15 million bushels on tight domestic supplies and a larger expected crop in Canada.
Exports for 2011/12 are projected 50 million bushels lower reflecting the slowing pace of old crop sales and shipments. The 2011/12 corn import projection is raised 2 million bushels based on the pace of shipments to date.