WASDE increases estimate for 2020-'21 corn use in ethanol
June 10, 2021
BY Erin Voegele
The USDA increased its forecast for 2020-‘21 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released June 10. The season-average farm price for corn was unchanged.
The USDA reduced its forecast for beginning corn stocks by 150 million bushels, reflecting projected increases for 2020-’21 corn used for ethanol and exports.
Advertisement
Advertisement
Corn used for ethanol is raised 75 million bushels based on the most recent data from the agency’s Grain Crushings and Co-Products Production report, and weekly ethanol production and refiner and blender net inputs data during May, which indicate demand is nearly back to pre-pandemic levels. The USDA’s projections now show that 5.05 billion bushels of corn went to ethanol production in 2020-’21, up from the May WASDE’s estimate of 4.975 billion bushels, and up from 4.857 billion bushels in 2019-’20. For 2021-‘22, the USDA has maintained its forecast that 5.2 billion bushels of corn will go to ethanol production.
Exports are raised 75 million bushels, based on export inspection data for the month of May that implies continued robust global demand for U.S. corn, despite high prices. With no use changes forecast for 2021-’22, ending stocks are lowered 150 million bushels.
The season-average farm price received by producers is unchanged at $5.70 per bushel.
Advertisement
Advertisement
Globally, Brazilian corn production for 2020-’21 is reduced on lower yield expectations for second-crop corn, based on below-normal rainfall in the center-west and south during May. Partly offsetting is greater indicated area for the second and third crops.
For 2020-’21, Brazil’s corn exports are lowered for the marketing year beginning March 2021. Foreign corn ending stocks for 2021-’22 are raised relative to last month, mostly reflecting increases for Pakistan and South Africa that are partly offset by a reduction for Canada.
Related Stories
The USDA on April 14 announced the cancellation of its Partnerships for Climate-Smart Commodities program. Select projects that meet certain requirements may continue under a new Advancing Markets for Producers initiative.
The Michigan Advanced Biofuels Coalition and Green Marine are partnering to accelerating adoption of sustainable biofuels to improve air quality and reduce GHG emissions in Michigan and across the Great Lakes and St. Lawrence Seaway.
The USDA reduced its outlook for 2024-’25 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released April 10. The outlook for soybean oil pricing was revised up.
The U.S. Energy Information Administration reduced its 2025 forecasts for renewable diesel and biodiesel in its latest Short-Term Energy Outlook, released April 10. The outlook for “other biofuel” production, which includes SAF, was raised.
FutureFuel Corp. on March 26 announced the restart of its 59 MMgy biodiesel plant in Batesville, Arkansas. The company’s annual report, released April 4, indicates biodiesel production was down 24% last year when compared to 2023.
Upcoming Events
