NASS report: Total corn consumption higher in May than April

By Ann Bailey | July 06, 2016

Total corn used for alcohol and other uses was 479 million bushels in May 2016, the USDA National Agricultural Statistics Service said in its monthly grain crushings and coproducts production report.

Total corn consumption was 7 percent higher in May 2016 than the previous month, but was 5 percent lower than it was in May 2015. May 2016 usage was 90.7 percent for alcohol and the remaining 9.3 percent was for other purposes. Corn for beverage alcohol was 2.85 million bushels in May 2016, 6 percent more than in April 2016, but 12 percent less than May 2015.

Corn used for fuel ethanol in May 2016 was 426 million bushels, 8 percent more than were used in April 2016, but 5 percent less than were used in May 2015, the NASS report said. Corn used for dry milling fuel production in May 2016 was 89.1 percent of the total for fuel ethanol and corn used for wet milling fuel production was 10.9 percent.

The NASS report pegged condensed distillers solubles (CDS) in May 2016 were 131,318 tons, slightly higher than the 130,324 tons it estimated in April 2016, but l7,439 tons lower than the May 2015 estimate. The corn oil May 2016 estimate was 121,699 tons, 10,622 tons higher than the estimate of 111,077 in April 2016 and 4,650 tons higher than the 117,049 tons estimated in  in May 2015. The NASS report estimated distillers dried grains (DDGS) at 411,467 in May 2016, 37,017 tons higher than the April 2016 estimate of 374,750 tons and 6,981 tons lower than the May 2015 estimate of 418,448 estimates.

                The USDA NASS report estimated that the pace of corn used for ethanol and for byproduct production was 1.7 percent higher during the first half of the marketing year than it was during the same period the previous marketing year, but in the third quarter was 3.3 percent less this marketing year than last, noted Darrel Good, University of Illinois agriculturalist in the “Weekly Outlook: Corn Market Faces Strong Outlook” farmdoc daily.

A slowdown in the pace of ethanol production and increased use of sorghum for ethanol production has slowed the pace of the corn crush, Good said in farmdoc daily. Ethanol production during the first seven months of the marketing year was 3.6 percent higher than during those months last year, Good said.  However, April 2016 ethanol production only was 0.5 percent higher than in in April 2015, he said.

Weekly estimates for May and June point to a year over year increase of less than 1 percent, Good said. Meanwhile, sorghum use of ethanol production during the first seven months of the marketing year will be 107 million bushels, 90 million more than were used during the same period last year, he said.

To reach the USDA projection that 5.25 billion bushels of corn will be used for ethanol and coproduction production this marketing year, use during the fourth quarter will have to be 1.385 billion bushels or 50 million bushels or 3.7 percent more than last year, Good said. If sorghum use this summer remains high, corn use actually could be at least 50 million bushels lower than the USDA estimate, he noted.