Record US corn harvest projected by UDSA; ethanol price drops

Ethanol futures prices fell sharply, after a long rise in which it followed in the tracks of oil. But after the US Energy Department released figures showing strong gasoline stocks, and the USDA released figures projected a strong corn crop, prices dropped 9.4 cents on the Chicago Board of Trade, to $2.481 per gallon. The USDA report shows that corn production for 2011/12 is projected at a record 13.5 billion bushels as 92.2 million acres of corn will be planted, 85.1 million acres will be harvested, and the average yield will reach 158.7 bushels per acre.

“This report confirms once again that the American farmer has the ability to feed and fuel this nation sustainably and still leave corn in surplus, despite challenging weather conditions,” said Growth Energy CEO Tom Buis. “Advancements in technology and agriculture mean that our farmers can procure more corn out of every acre to continue to meet rising demand in the marketplace.”

Meanwhile in Washington, the Renewable Fuels Association has released new figures showing that nearly 35 million metric tons of animal feed will be produced as a result of ethanol production during 2010/11. If the 39 million tons of livestock feed was a country’s corn crop, it would represent the 4th largest crop in the world. The amount of DDGS produced would be enough to produce the beef required for 50 billion quarter-pound hamburgers – seven patties for each person on the planet, enough to produce one chicken breast for every American every day for a year.