Private Analyst Says Ethanol Now Consumes More Corn than Feed Use
Trend will continue to at least 2014
More of the U.S. corn crop is now going to ethanol production than to livestock and poultry feed use and this trend will continue to at least 2014, according to North American Risk Management Services Inc.
The market analysis company says corn for ethanol use increased 400 percent from 1.3 billion bushels in 2005 to 5 billion bushels last year, exceeding 40 percent of the crop. Feed use fell 22 percent during the same period as producers shifted to alternative feeds, including dried distillers solubles, an ethanol byproduct.
The company says ethanol could take as much as 5.1 billion bushels in the year that began September 1, or roughly 41 percent of the crop. Feed demand is forecast to drop to 4.6 billion bushels, down from about 4.8 billion last year.
