Source: USDA, World Grain Agricultural Outlook Board, World Agricultural Supply and Demand Estimates
The larger supply is expected to have a dampening effect on prices, making U.S. corn more competitive in the global market and boosting exports to 2.1 billion bushels in 2016-17, up from 1.9 billion from the 2015-16 crop and the highest since 2007-08 when they reached 2.4 billion. Use for ethanol as well as other food, seed and industrial uses is expected to increase only modestly (less than 1%) to 6.7 million bushels, reflecting the maturity of those markets.
Feed and residual use (a category that mainly includes livestock feed as well as other uses unaccounted for) is expected to consume 5.5 billion bushels, up 300 million from the 2015-16 crop. With projected supply expected to exceed total use of the 2016-17 crop, ending stocks are forecast to grow to 2.1 billion bushels, up from the 1.7 billion bushels expected to be on hand at the end of the 2015-16 crop year.