The USDA estimated U. S. corn acres at 87.9 million; while this number was above last year’s seeded area of 86.5 million, traders were expecting acres to come in near 89.3 million. Actual acreage was 1.4 million below analysts’ pre report estimates. Using a trend line yield, U. S. corn production is expected to come in near 13.2 billion bushels, slightly higher than 13.1 billion bushels in 2009. Corn demand appears to be increasing as ethanol usage will increase from 4.5 billion bushels in 2009-10, to 4.7 billion bushels this year. Exports are expected to stay strong in the upcoming crop year, resulting in a carryout of 1.4 billion bushels, down from 1.5 billion bushels in 2009-10. The fundamental structure is such that the market cannot afford to have a crop problem in the Midwest. Otherwise, the carryout will drop to historical low levels and stronger prices will occur.