The latest World Agricultural Supply and Demand Estimate (WASDE) from USDA projects less corn being used for ethanol this year.

According to the report released this morning, ethanol use for corn was lowered by 300 million bushels lower “as prospects for blending above federally mandated levels decline.”

Financial problems for ethanol producers are reducing plant capacity utilization for existing plants and delaying plant openings for those facilities still under construction. Falling gasoline prices have also resulted in high relative prices for ethanol, reducing blender incentives.

There is no update for corn production from USDA this month, which remains at 12 billion bushels.