Posted by: usset001 | July 7, 2011

USDA projecting a milestone event in the demand for corn in 2011/2012 crop year

With the harvest of 2009 looming just two years ago, I trumpeted a milestone event in the demand for corn. For the first time ever, feed and residual demand would NOT be the largest segment of corn demand. That was the year when industrial demand became the largest segment of corn demand. Industrial demand includes corn used in ethanol and corn syrup production. While ethanol demand is the largest (and fastest growing) piece of industrial demand, corn sweetener production is not insignificant, using about 1.5 billion bushels each year.

According to the latest WASDE report, the 2011/2012 crop year will mark another milestone. The June WASDE report projected feed demand for corn at 5 billion bushels, and ethanol demand for corn at 5.05 billion bushels. Ethanol demand alone will exceed feed demand for corn.

 


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