Corn balance sheets are unchanged and global supplies are lower from last month's report. Average prices narrowed 10¢ on each end to $6-6.40/bu. Global soybean production is down, but average prices are up to 12-12.50/bu.

 

Corn

U.S. feed grain balance sheets for 2011-2012 are unchanged this month. The projected ranges for the season-average corn farm prices is narrowed 10¢ on each end to $6-6.40/bu.

Corn used to produce ethanol in 2011-2012 is projected at 5.0 billion bushels, unchanged again this month. The latest monthly data from the Energy Information Administration (EIA) indicates that average daily ethanol disappearance fell to a 23-month low in January pushing ethanol stocks to a new record high. Weekly EIA ethanol production data suggest average daily ethanol production during February and March has continued to fall hitting its lowest level since early last fall.

Projected 2011-2012 corn feed and residual use is unchanged at 4.6 billion bushels. March 1 stocks indicate a September-February feed and residual disappearance 238 million bushels lower than during the first six months of the 2010-2011 marketing year. Prospects for feed and residual disappearance during the remainder of 2011-2012 will be limited by an improving outlook for summer wheat feeding and the potential for 2012 new-crop corn use during August. The quick start to corn planting this spring and more intended acres across the South raise the potential for a substantial increase in new-crop corn use before the September 1 start of the new marketing year.