The first U.S. Department of Agriculture outlook for this year’s corn crop is calling for record yields and record production, while corn use for ethanol is expected to remain the same.

The May 10 World Agricultural Supply and Demand Estimates report projects U.S. feed grain supplies for 2012/13 at a record 416.3 million tons, up 16 percent from 2011/12 at a record 416.3 million tons, with corn production called at a record 14.8 billion bushels, up 2.4 billion from 2011/12.

A projected 5.1-million acre increase in harvested area and higher expected yields, compared with 2011/12, sharply boost production prospects. The 2012/13 corn yield is projected at a record 166.0 bushels per acre, 2.0 bushels above the 1990-2010 trend reflecting the rapid pace of planting and emergence. Despite the lowest expected carry-in in 16 years, corn supplies for 2012/13 are projected at a record 15.7 billion bushels, up 2.2 billion from 2011/12. Total U.S. corn use for 2012/13 is projected up 9 percent from 2011/12 on higher feed and residual disappearance, increased use for sweeteners and starch, and larger exports.

The report kept projected corn use for ethanol unchanged at 5 billion bushels for this year on weak gasoline consumption limiting domestic blending opportunities. In an analysis of the report this morning, the Renewable Fuels Association said, “While still just an estimate, the confidence USDA is displaying in American farmers underscores their unique ability to feed the world and help renewably fuel the nation. There is a lot of growing season left, and these numbers could change by the fall. But, with normal growing conditions it is clear that farmers will continue to meet the bell and provide safe, reliable food and clean, domestic fuel and silence those ‘chicken littles’ that perpetually predict a shortage of corn and catastrophe in the grocery aisle.”