Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 2/10/10

USDA raised its forecast of corn use of ethanol production by 100 million bushels to 4.3 billion bushels in the 2009-10 marketing year, reflecting the latest ethanol production data from the Energy Information Agency.

November's record ethanol production was up 3 percent from the previous record in October as higher prices for ethanol and distillers grains boosted ethanol producer returns. November-December corn use for ethanol was up 16 percent from the same period in 2008-09. Although returns have declined since November, recently lower corn prices continue to support profitability for ethanol producers, USDA said in its latest World Agricultural Supply and Demand Estimates report.

USDA lowered its estimate of corn stocks at the end of the marketing year to 1.719 billion bushels from 1.764 billion projected a month ago and also below the average Wall Street analyst forecast of 1.748 billion bushels, according to a Dow Jones survey.

USDA narrowed its projected marketing-year average farm price for corn by 5 cents on both ends of the range, to $3.45 to $3.95 per bushel.

Soybeans

USDA put soybean ending stocks for the 2009-10 marketing year at 210 million bushels, down from 245 million forecast a month ago and below the average Wall Street estimate of 219 million bushels.

USDA lowered its soybean price range for 2009-10 by 20 cents on both ends of the range, to $8.70 to $10.20 per bushel. However, it raised its soybean meal price range by 5 cents on each end to $270 to $320 per ton, noting strong soybean meal exports and a lower soybean meal extraction rate.

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