New Delhi — The US Department of Agriculture has lowered estimates for corn used for ethanol in the US for the 2019-20 marketing year (September-August) to 5.05 billion bushels (128.27 million mt), from 5.425 billion bushels estimated earlier in March, the agency said in its April World Agricultural Supply and Demand Estimates report Thursday.
"Corn used to produce ethanol is lowered by 375 million bushels based on the latest indications from Energy Information Administration data indicating an unprecedented decline in ethanol production and motor gasoline consumption as a result of COVID-19," the USDA report said.
USDA has raised US corn ending stocks estimates to 2.092 billion bushels from 1.892 billion bushels projected in March.
Platts Analytics had estimated corn used for ethanol in the US to be lowered to 4.835 billion bushels and US corn ending stocks to be raised to 2.183 billion bushels.
Estimate for feed and residual use in the US was raised by the USDA to 5.675 billion bushels, from 5.525 billion bushels estimated in March. Platts Analytics estimated the figure to be at 5.725 billion bushels.
"This month's 2019-20 US corn outlook is for reduced imports, greater feed and residual use, lower food, seed, and industrial use, and larger stocks," the USDA report said.
USDA maintained its estimate for US corn exports at 1.725 billion bushels projected in March.
Platts Analytics has estimated corn exports from the US in 2019-20 to be slightly higher at 1.8 billion bushels due to the current lower prices.
The USDA maintained its estimate for US corn production for the 2019-20 marketing year at 13.692 billion bushels.
The agency's estimates for corn acreage and harvested acres in the US were also kept unchanged at 89.7 million acres and 81.5 million acres, respectively.
The estimated yield for US corn also held steady at 168 bu/acre.
ESTIMATES FOR UKRAINE, SOUTH AMERICA STEADY
Ukraine corn production estimates for 2019-20 were raised slightly to 35.89 million mt in April, from 35.80 million mt estimated earlier. Exports estimate from the country was maintained at 32 million mt.
Corn exports from Brazil and Argentina were also kept unchanged at 36 million mt and 33.5 million mt, respectively.
USDA also maintained its production forecast for Brazil and Argentina in 2019-20 at 101 million mt and 50 million mt, respectively.
GLOBAL CORN
The department raised its estimate for global ending stocks of corn in 2019-20 to 303.17 million mt, from 297.34 million mt estimated in March.
The USDA raised the forecast for global corn imports in 2019-2020 marginally to 169.03 million mt, from 168.62 million mt in March. The agency's export estimate was also raised slightly to 165.93 million mt from 165.83 million mt earlier.
The USDA also increased its global corn production estimate for 2019-20 slightly to 1.113 billion mt from 1.112 billion mt projected in March.
