Corn's Up

(click on image to enlarge)

The latest World Agricultural Supply Demand Estimates from USDA at at:

http://www.usda.gov/oce/commodity/wasde/latest.pdf

U.S. feed grain supplies for 2010/11 are projected down reflecting lower corn
production. U.S. corn production is estimated 93 million bushels lower as a 1.5-bushel-per-acre reduction in the national average yield outweighs a 183,000-acre increase in harvested area. A 5-million-bushel increase in projected U.S. corn imports slightly offsets the reduction in output. Corn
feed and residual use is projected 100 million bushels lower based on September-November disappearance as indicated by the December 1 stocks. Corn used for ethanol is raised 100 million bushels offsetting the reduction in expected feed and residual use. Record December ethanol production, as indicated by weekly Energy Information Administration data, boosts corn use to
date.

Ending corn stocks for 2010/11 are projected 87 million bushels lower at 745 million. This is down 963 million bushels from last year. The stocks-to-use ratio is projected at 5.5 percent, the lowest since 1995/96 when it dropped to 5.0 percent. The 2010/11 marketing-year average farm price projection is raised 10 cents on both ends of the range to $4.90 to $5.70 per bushel as cash and futures prices are expected to strengthen. Heavy early season marketings of corn priced well below current cash price levels are expected to limit the upside potential for the weighted average price received by producers.

This headline from Bloomberg:

Corn Climbs to 30-Month High on Rising Demand for Smaller Supply
January 18, 2011, 3:20 PM EST

available at: http://www.businessweek.com/news/2011-01-18/corn-climbs-to-30-month-high-on-rising-demand-for-smaller-supply.html

fails to mention ethanol.

Dairy farmers will not be feeding heavy for anytime in the foreseeable future.