Projected U.S. corn carryover on Sept. 1, 2010, was 1.8 billion bushels, up 80 million, or 5%, from 1.7 billion bushels projected in February and 8% above 1.7 billion bushels in 2009. Carryover was raised as a result of a projected 100-million-bushels decrease in 2009-10 corn exports only partially offset by a 20-million-bushels reduction in 2009 corn production.

U.S. 2009 corn production was estimated at 13.1 billion bushels, down 20 million from February but 9% above 2008 production of 12.1 billion bushels and still the largest on record. Total 2009-10 corn supply also was lowered by 20 million bushels from February, to 14.8 billion bushels.

Domestic corn use in 2009-10 was unchanged from February at 11.1 billion bushels, including 5.6 billion bushels for feed and residual, 1.3 billion bushels for food and 4.3 billion bushels for ethanol.

Corn exports in 2009-10 were projected at 1.9 billion bushels, down 100 million from February due to increasing competition from larger world supplies, the USDA said.

Total corn use was projected at 13 billion bushels, down 100 million from February but up 959 million, or 8%, from 12.1 billion bushels the previous year.

The average corn price was projected to fall in a range of $3.45-$3.75 a bushel compared $3.45-$3.95 in February, $4.06 in 2008-09 and $4.20 in 2007-08.

World corn production in 2009-10 was projected at 803.69 million tonnes, up 5.86 million tonnes from 797.83 million tonnes in February and up 9.17 million tonnes from 794.52 million tonnes in 2008-09.

Corn production in 2009-10 was raised from February by 3.8 million tonnes, to 21 million tonnes, in Argentina, and by 2 million tonnes, to 13.5 million tonnes, in South Africa, the USDA said.

Global corn ending stocks were projected at 140.15 million tonnes for 2009-10, up 6.11 million tonnes, or 5%, from 134.04 million tonnes in February but down 6.25 million tonnes, or 4%, from 146.4 million tonnes in 2008-09.