Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm Programming Radio Oklahoma Network  |  7401 N. Kelley Ave. Oklahoma City, OK 73111  |  (405) 841-3675  |  Fax: (405) 841-3674


Agricultural News

Renewable Fuels Association Releases Corn and Ethanol Market Data

Fri, 30 Sep 2011 14:30:21 CDT

Renewable Fuels Association Releases Corn and Ethanol Market Data According to the USDA quarterly grain stocks report released this morning, end stocks of corn for the 2010/2011 marketing year stand at 1.13 billion bushels. That is nearly 200 million bushels higher than many experts were predicting and an indication that the market is working to ensure sufficient supplies of corn remain available for all uses.

“Pushing corn stocks back above one billion bushels is important for the psyche of the market,” said Renewable Fuels Association Vice President Geoff Cooper. “Having more corn available should somewhat ease supply concerns brought on by poor growing conditions this year and provide more of a buffer until farmers complete the harvest of this year’s crop. Despite this temporary tightness in the corn market, it is clear that with the proper market signals American farmers can and will ensure enough corn is available for all uses.”

As the chart above demonstrates, the livestock feed produced at US ethanol biorefineries (known as distillers grains or DDGS) provides a substantial amount of supply to the feed market. On a net basis, ethanol production consumes 25 percent of the nation’s corn crop. When the amount of corn used for ethanol feed co-products is combined with feed and residual demand, total feed demand becomes 6.35 billion bushels, or 47 percent of expected use in 2011/12.

Much has been made of the smaller than usual carryover in corn supplies and the impact this may have on corn prices. Predictably, many of the critics of ethanol including fast food chains, corporate livestock and meat processors, and food manufacturers have eagerly sought to blame ethanol production for higher prices. As the RFA has pointed out time and again, such claims simply lack any fundamental statistical evidence. As the chart below notes, corn prices hovered between $3-4/bushel and were actually trending downward during the period of high growth for ethanol production (1/09 to 8/10). Ethanol use was flat or declining in the period when corn prices spiked to $6/bushel and then to $7/bushel.

“The bottom line remains that ethanol’s influence on corn prices is marginal and has been greatly exaggerated by our critics,” said Cooper. “Corn prices and retail food prices increase for a host of reasons, not the least of which is the price of oil.”

Speaking of ethanol production, monthly data from the Energy Information Administration is available and shows that through July, the US industry had produced 8.028 billion gallons. Based on these numbers, the industry is on pace to supply more than 13.8 billion gallons for calendar year 2011. However, it is important to note that ethanol production in August and September has shown a slight downward trend as noted by the weekly ethanol production data. As the RFA noted on Wednesday, the current 4-week average for ethanol production would yield 13.5 billion gallons of ethanol over a full 52-week year. The RFA is predicting 2011 ethanol production to be approximately 13.7 billion gallons.

Click here to see complete year to date ethanol production, import, and export data.

Renewable Fuels Association Releases Corn and Ethanol Market Data

Renewable Fuels Association Releases Corn and Ethanol Market Data


WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Thursday Preopening Market Update with Dave Lanning  Thu, 29 Jun 2017 07:24:50 CDT
  • BPI and ABC Settle Pink Slime Case- No Terms Made Public But BPI Says Deal Signals They are Totally Vindicated  Thu, 29 Jun 2017 05:04:46 CDT
  • Wheat Industry and Other Group Urge the Trump Administration to Appoint USDA Leadership Team  Wed, 28 Jun 2017 15:20:43 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Wednesday, June 28, 2017  Wed, 28 Jun 2017 15:16:00 CDT
  • Feeder Steers Sell Mostly Steady to Higher This Week at OKC West in El Reno  Wed, 28 Jun 2017 15:13:20 CDT
  • EPA's Withdrawal of the Waters of the U.S. a Step Toward Regulatory Certainty for Soybean Farmers  Wed, 28 Jun 2017 14:58:40 CDT
  • Wednesday Market Wrap-Up with Justin Lewis  Wed, 28 Jun 2017 14:50:50 CDT
  • Wednesday Afternoon Market Wrap-Up with Carson Horn  Wed, 28 Jun 2017 14:34:46 CDT

  • More Headlines...

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show Stillwater Milling American Farmers & Ranchers KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    © 2008-2017 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup

    WebReady powered by WireReady® NSI