USDA lowers corn use for ethanol forecast
The US Department of Agriculture (USDA) reduced its outlook for US corn use for ethanol in 2015/16 by 75 million bushels as a result of an expected increased use of sorghum.
In its November crop production report, USDA forecast higher use in ethanol production and higher feed and residual use of sorghum, reflecting declining premiums offered by exporters for sorghum and big price discounts relative to corn in interior cash markets. The department lowered by 105 million bushels its estimate for US sorghum exports in 2015/16, when compared to its October report.
The US is now expected to use 5,175 million bushels of corn in 2015/16 for the production of ethanol and by-products such as distillers' grains and corn oil.
The forecast for corn production was increased by 99 million bushels to 13,650 million bushels. In addition to the reduced ethanol use outlook, exports are projected to be 50 million bushels lower, while expected feed and residual use was increased by 25 million bushels.
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