Construction Slump Impacts Corn Use

One of the hardest hit industries in the economic downturn is construction – and that, believe it or not, has an impact on corn usage.

According to USDA Outlook Board chairman Gerry Bangee, the slumping construction business bears part of the blame for a cut in the forecast for industrial use of corn by 10 million bushels to 4.99 billion in the most recent supply demand report. “If you look at what’s been happening in the building materials market, where starch is used as an input, given the slow down in housing and construction that comes along with the economic situation we have right now, we trimmed our number 10 million bushels to reflect the slow down in the use of corn starch products in building materials,” said Bangee.

Interesting, but such a small fraction Bangee says will have little effect on corn markets or prices.