US corn demand forecast could plunge as ethanol yields rise 7%

In Washington, there are rumors that the USDA is getting ready to boost its corn use factor for ethanol plants to 2.9 gallons of ethanol per bushel of corn from 2.7 gallons, which will mean a big reduction in corn demand this season. With a tight corn supply already straining margins, boosting production efficiency numbers could pressure corn prices significantly and make ethanol producers more profitable. Agrimoney reports that a well-placed USDA official is not aware of the proposed change.