Despite the Environmental Protection Agency proposal to lower corn ethanol volume obligations for 2014 under the Renewable Fuel Standard (RFS), USDA’s December supply/demand reportis 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.
Source: Domestic Fuel