Last week, the U.S. Department of Agriculture (USDA) released its September World Agriculture Supply and Demand Estimates (WASDE) report. The report shows that the U.S. is on track to produce an even larger record corn crop than previously expected. The 2014 corn crop is now estimated at 14.395 billion bushels, up 363 million bushels from the August forecast.
Total 2014 corn usage is also up 170 million bushels from last month. Projected food, seed and industrial use is raised 70 million bushels, with increases expected for both ethanol and sweeteners. These increases are supported by the reduced corn price outlook and higher production of these corn-based products in recent months.
In response to USDA’s announcement, Tom Buis, CEO of Growth Energy, released the following statement: “America’s farmers continue to break records and prove beyond a doubt that we can produce a bounty of food, feed and fuel. If last month’s historic forecast didn’t satisfy our critics, this month’s certainly should. This latest report has to silence any lingering proponents of the tired food versus fuel debate.
“Global food prices are at a four-year low, while ethanol production volumes are near the highest ever recorded. Clearly, the success of the ethanol industry is not harming anyone’s grocery bill. According to a 2013 World Bank study, it is actually crude oil prices that have been responsible for 50 percent of the increase in global food prices since 2004.
“Ethanol is providing consumers with a choice and savings at the pump, while also creating jobs, revitalizing rural communities, improving the environment and increasing our nation’s energy independence. It saves Americans as much as $1.09 per gallon at the pump, supports nearly 400,000 jobs that will never be outsourced and has helped reduce our dependence on foreign oil by 45 percent since the enactment of the RFS. The WASDE report makes it clear that the American farmer can fuel this homegrown energy revolution and feed the world.”
Source: Growth Energy