USDA Increases Corn Use for Ethanol

usda-logoDespite the Environmental Protection Agency proposal to lower corn ethanol volume obligations for 2014 under the Renewable Fuel Standard (RFS), USDA’s December supply/demand report is predicting a 50 million bushel increase in corn use for ethanol next year. Ending stocks are now expected to total 1.792 billion bushels, down 5 percent from last month’s estimate.

The new report also calls for increases in exports, food and seed use but ending stocks will still be more than double a year earlier with this year’s record crop of just under 14 billion bushels. Prices are expected to average $4.40 a bushel in the current year, down significantly from $6.89 last marketing year.

One thought on “USDA Increases Corn Use for Ethanol

  1. Wait a minute; if the USDA is expecting a 50 million bushel increase in corn used for ethanol next year, why the drastic cut in corn prices last year? Seems to me the corn growers have far more to complain about than the EPA cutting the ethanol standard in gasoline.