USDA’s May World Agricultural Supply and Demand Estimates report is forecasting corn use for ethanol to increase this year with greater production and domestic use.
The corn crop is projected at 15 billion bushels, up from last year on higher area and a yield projection of 179.5 bushels per acre assuming normal planting progress and summer growing season weather.
Total U.S. corn use in 2021/22 is forecast to decline relative to a year ago as greater domestic use is more than offset by lower exports. Food, seed, and industrial (FSI) use is projected to rise 220 million bushels to 6.6 billion. Corn used for ethanol is projected to increase based on expectations of higher U.S. motor gasoline consumption. Corn feed and residual use is unchanged, as a larger crop is offset by increased corn used for ethanol and higher expected season-average farm prices received by producers.
The season-average corn price received by producers in 2021/22 is projected at $5.70 per bushel, up $1.35 from a year ago.