In the December Supply/Demand report, USDA made surprisingly large cuts in demand. USDA lowered exports by 100 million bushels. The cut in exports wasn't too surprising given the slow pace of exports so far this season. However, that coupled with a 300 million bushel reduction in corn for ethanol was surprising. Corn for ethanol is now forecast at 3.7 billion bushels, up from 3.026 billion bushels last season. Financial concerns within the ethanol industry including low processing and blending margins along with reduced plant utilization and delayed plant openings prompted the cut in corn for ethanol. The only offset is a 50 million bushel increase in feed and residual use to 5.35 billion bushels. Lower corn prices will help boost feed demand, but the cut in corn for ethanol also reduces competing supply of distiller grains. Corn ending stocks are now projected at 1.474 billion bushels, up 350 million bushels from last month and down only 150 million from last season.