Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 5/11/10

USDA forecast a record 13.37 billion bushel U.S. corn crop and record corn supplies of 15.118 billion bushels in the 2010/11 (September-August) marketing year — plenty to accommodate rising exports and ethanol use and still end the year with carryout stocks of 1.818 billion bushels, up 5 percent from last year.

On average, analysts polled by Dow Jones had expected 2010/11 carryout stocks a bit larger at about 1.884 billion bushels. USDA put 2009/10 corn carryout at 1.738 billion bushels, also shy of the average analyst forecast of 1.853 billion.

In its latest Crop Production and World Supply and Demand Estimates reports, USDA boosted corn ethanol use to 4.6 billion bushels in 2010/11 from 4.4 billion bushels expected use in 2009/10, based on rising federal biofuels mandates and strong blending incentives that continue to boost ethanol use.

USDA predicted corn exports in 2010/11 at 2 billion bushels, compared to 1.95 billion bushels expected in 2009/10, which it raised on larger supplies and lower prices.

Domestic corn feed and residual use, however, was projected to be down slightly, to 5.35 billion bushels in 2010/11 from 5.375 in 2009/10, due to a slow recovery in animal numbers and increased use of distiller's grains.

Corn prices were seen down to a range of $3.20 to $3.80 per bushel in 2010/11 from a tighter range of $3.50 to $3.70 in 2009/10.

The Renewable Fuels Association called the projections "quite impressive" and said they should "go a long way toward putting an end to the food fight between corporate livestock interests and American farmers and ethanol producers."

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