St. Louis, Missouri, USA
February 9, 2010

Source: U.S. National Corn Growers Association

The latest World Agricultural Supply and Demand Estimate, released by the U.S. Department of Agriculture this morning, estimates a slightly higher demand for corn to produce ethanol and a minor decrease in corn exports from the 2009 crop. During this period, corn prices held stable at $3.70 per bushel.

"This report reinforces the importance of ethanol to corn growers across the country," said NCGA President Darrin Ihnen, a grower from Hurley, S.D. "NCGA consistently advocates for government policies that reflect the important role that ethanol plays for growers and the public as a cost effective, environmentally friendly domestic fuel option."

Estimated demand for corn from the ethanol industry increased by 100 million bushels to 4.3 billion bushels total, which takes into account approximately 1 billion bushels of distillers grains derived in the ethanol production process as livestock feed. USDA cites updated data from the Energy Information Agency as the reason for this increase. Over the same period, estimated exports dropped by 50 million bushels due to increased competition from Argentina.

The March WASDE should provide insight into what has happened to the portion of the 2009 corn crop that had to remain in the field over winter due to difficult harvest conditions. This information could impact supply estimates and prices

Click here for the full report.

Website: http://www.ncga.com

Published: February 9, 2010