Source: USDA, NCGA, AFBF, RFA

In its monthly report on agricultural supply and demand, the U.S. Department of Agriculture made no changes to its estimate of how much corn will be carried out from the domestic 2010 corn supply and forecast an increased global grain supply. In addition, USDA made a small but important change that reflects the growing importance of ethanol coproducts such as distillers grains, something requested by the Governor's Biofuels Coalition and supported by the National Corn Growers Association.

"As we are now into our important planting season and expecting to plant more corn acres, this report is welcome news that will help soothe some market concerns about corn and grain supply," said NCGA President Bart Schott, a grower in Kulm, N.D. "At a time of increased demand, it is also good to see that the global supply has increased."

Farmers and ranchers examining the April WASDE were expecting a slight reduction in the corn supply from last month due to increasing use for ethanol, but USDA pegged the corn supply at 5 percent of total usage, the same as the March report.

"A 5 percent stocks-to-use ratio is still historically low," explained Todd Davis, crops economist with the American Farm Bureau Federation. "That represents just 18 days of supply, so we're still going to need a big 2011 corn crop because we don't expect any drop in total use this year."
 
Read the USDA WASDE report 

NCGA's response 

American Farm Bureau Federation reaction 

RFA's analysis of the report