The USDA increased its forecast for 2020-‘21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released June 10. The season-average farm price for corn was unchanged.

The USDA reduced its forecast for beginning corn stocks by 150 million bushels, reflecting projected increases for 2020-’21 corn used for ethanol and exports.

Corn used for ethanol is raised 75 million bushels based on the most recent data from the agency’s Grain Crushings and Co-Products Production report, and weekly ethanol production and refiner and blender net inputs data during May, which indicate demand is nearly back to pre-pandemic levels. The USDA’s projections now show that 5.05 billion bushels of corn went to ethanol production in 2020-’21, up from the May WASDE’s estimate of 4.975 billion bushels, and up from 4.857 billion bushels in 2019-’20. For 2021-‘22, the USDA has maintained its forecast that 5.2 billion bushels of corn will go to ethanol production.

Exports are raised 75 million bushels, based on export inspection data for the month of May that implies continued robust global demand for U.S. corn, despite high prices. With no use changes forecast for 2021-’22, ending stocks are lowered 150 million bushels.

The season-average farm price received by producers is unchanged at $5.70 per bushel.

Globally, Brazilian corn production for 2020-’21 is reduced on lower yield expectations for second-crop corn, based on below-normal rainfall in the center-west and south during May. Partly offsetting is greater indicated area for the second and third crops.

For 2020-’21, Brazil’s corn exports are lowered for the marketing year beginning March 2021. Foreign corn ending stocks for 2021-’22 are raised relative to last month, mostly reflecting increases for Pakistan and South Africa that are partly offset by a reduction for Canada.