Corn prices in 2012: which direction?

If the current US herd destruction (as a result of declining demand for beef) reduces the need for corn in US feedlots and DDGs really meet the demand of producers, the US corn balance may not deteriorate in 2012 as much as it did last year. Indeed sources indicate that DDGs exports slowed down in 2011, suggesting increased domestic consumption. However much will depend on Chinese appetite for the grain, US distillers' output and the state of Argentina/Uruguay and Brazil corn harvests. All of this does not mean that the US corn balance is OK (stock to use ratios are likely to keep declining) nor does it say that US ethanol mandate is sustainable at current levels, but some improvements on the supply side may reduce the risks of fast rising [commodity] prices.