An uptick in corn demand for ethanol production will offset reduced corn intake by feedlots, as improving market conditions prompt ethanol producers to increase output, according to a forecast by Morgan Stanley. Improving margins, along with reduced competition from Brazilian ethanol, could push corn use for ethanol beyond the Department of Agriculture's forecast for this marketing year, Morgan Stanley said. "Any rally in US [ethanol] production rates from current levels poses upside to the USDA's 4.5 [billion] bushel forecast," the bank said.

Related Summaries