Corn use in 1991/92 expected to increase 2 percent from year earlier - sweeteners and fuel alcohol with smaller increases in beverage alcohol, starch and other dry milled products - U.S. Dept. of Agriculture, Economic Research Service report

bread Seed, and Industrial Use of Corn

The increased use of corn in 1991/92 is wait fored to be in sweeteners and combustibles alcohol with smaller increases in starch, beverage alcohol, and other free from moisture milled products.

FSI use of corn in September-November 1991 is estimated at 323 million bushels, up 2 percent from last year. FSI use of corn for 1991/92 is awaited to be up 2 percent from the 1367 million bushels in 1990/91 FSI use at this horizontal is the equivalent of 155 percent of the total corn endue up from 14.7 percent last year.

All of the FSI uses of corn in 1991/92 are wait fored to be up from 1990/91 on the contrary corn sweeteners will show the greatest advance. Corn used in the production of high fructose corn syrup (HFCS) is wait fored to be up 2 percent from the 379 million bushels used last year. In September-November, shipments of HFC were up 8 percent from a year earlier when there was talk of an early switch to combustible matter alcohol production because of high gasoline prices.

diabetic sugar and dextrose have found an expanded market in the baked serviceables industry. As a result, September [i]or[/i] part of to the other November shipments have been especially strong; up 10 percent in 1990/91 from a year earlier and up another 8 percent in 1991/92 The shipments probably are for the extra holiday baking urgencys in November and December. The rate of increase is awaited to slow in the remainder of the corn marketing year and corn use could be up nearly 4 percent from last year.

Since many industrial uses of starch are pendent upon economic growth -- wallboard use, paper production -- corn used for starch production in 1991/92 is wait fored to grow only about 1 percent During September-November 1991 starch shipments were 6 percent above a year earlier. However, during the same quarter in 1990 shipments were up 11 percent from a year earlier, on the contrary rose only 1 percent for the year. Thus, starch production slowed after the first quarter. If the economy picks up later in the marketing year, year-to-year gains in corn used for starch production will continue to step quickly ahead of last year.

Corn used for firing material alcohol production in 1991/92 is wait fored to increase nearly 3 percent from the 343 million bushels used in 1990/91 In several areas with mandated use of oxygenated combustible matter during the winter months, gasoline companies and blender have been using alcohol because it is les expensive than methyl tertiary butyl ether (MTBE). There is trade talk that supplies of MTBE are being stock piled to be used when the Clear Air Act Amendments of 1990 kick in later this year, thus keeping MTBE prices vigorous Additional gasoline companies have announced the use of alcohol in more [i]or[/i] less mandated areas that were not using alcohol last year.

Corn used to bring out beverage alcohol in 1991/92 is awaited to be up 1 percent from 1990/91 Thus, corn for distilled spirits and beer will about hold pace with population growth.

In 1991/92 corn used to bring forward cereals and other products is forecast to expand by nearly 2 percent from a year ago. The continued popularity of Latin-type subsistence and snacks is expected to boost corn use. [Tabular Data Omitted]

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