USDA Projections Show U.S. Corn Use Is Expected to Grow Through 202602/27/2017
Newly released USDA agricultural projections through 2016 suggest that demand for U.S. corn will grow steadily over the next decade.
Rising yields will boost production and support the growing demand.
With the exception of a drop in 2017, corn production is expected to increase through the forecast period.
Lower corn prices and increasing corn production suggest that more corn will be used for feed and residual use, helping to fuel rising meat production.
A slight increase in corn-based ethanol production is projected through the 2018/19 marketing year, after which it is expected to decline to levels just below those in 2015.
Falling domestic demand reflects a declining trend in U.S. gasoline consumption due to fuel-efficient vehicles, reduced vehicle usage, infrastructure, and other constraints on growth in the ethanol fuel markets.
The United States is expected to remain the world’s largest corn exporter over the projection period.
Rising incomes, particularly in developing economies, translate to an increasing demand for meat, bolstering the market for U.S. corn as a feed grain.