Corn consumption may be progressing too rapidly based on available supplies. Soybean consumption appears to have slowed enough so that further rationing was not required, according to a University of Illinois economist.
“Since that assessment, the cash price of corn in central Illinois has increased by 22 cents and soybean prices are up 25 cents. The higher soybean prices have resulted from a 3% increase in soybean oil prices. The average cash price of soybean meal in central Illinois has declined by $7.70 per ton, or about 2%,” said U of I economist Darrel Good.
Following is an update of the likely pace of consumption. For the 2010-11 marketing year, the USDA projects that 4.9 billion bushels of corn will be used for ethanol production. That is 7.3% more than used in the previous year. Ethanol production during the first five months of the 2010-11 marketing year was 15% larger than during the first five months of the previous year, he said.… Continue readingRead More »