USDA’s World Agricultural Supply Demand report for February projects more sorghum to be used for ethanol.
According to the report, sorghum food, seed, and industrial use is projected 40 million bushels higher based on indications of increased sorghum use by ethanol plants in the Southern and Central Plains.
The report also noted that ethanol blender and producer margins have recently improved and weekly production of gasoline blends with ethanol has risen. The projected season-average farm price range for corn is narrowed 10 cents on each end to $3.65 to $4.15 per bushel.
Globally, USDA reports coarse grain supplies for 2008/09 are lowered 0.9 million tons this month with reductions in corn production for South America and India and world corn production for 2008/09 is lowered by 4.6 million tons.