Total 'Corn for Ethanol' Usage Now at Record Levels

Wisconsin Ag Connection
USAgNet - 07/24/2009

Due to the large number of ethanol plants that either closed or scaled back operations earlier this year, USDA trimmed 100 million bushels for its corn-for-ethanol usage projection in the July supply/demand update. According to The Brock Report, the new projection is 3.65 billion bushels, a 600-million-bushel increase from the previous marketing year.

"We have seen positive margins come back for the ethanol industry, particularly with the lower prices for corn and higher prices for gasoline, those margins have come back very strong," commented USDA Chief Economist Joe Glauber. "But, if we look at ethanol production and gasoline consumption in the U.S. both will be off a bit (from earlier predictions)."

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