USDA cuts corn demand forecast for ethanol by 7.5 percent, citing oil price impact

In Washington, the USDA cut its December forecast of corn demand from the ethanol sector by 7.5 percent from November, to 3.7 billion bushels annually. The department projected that the drop in oil prices would eliminate the market for ethanol beyond mandated levels. Industry observers said that further cuts beyond the 3.6 billion bushel mark were unlikely as the forecast was hovering now just at mandated usage levels. based on yields of 2.8 gallons per bushel and 10.5 billion gallons in the RFS mandate.

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