USDA projects less US ethanol demand for corn

10 October 2008 16:37  [Source: ICIS news]

HOUSTON (ICIS news)--Corn demand by the US ethanol industry will likely soften in 2008-2009 due to weaker blending demand amid a drop in gasoline consumption, the US Department of Agriculture (USDA) said on Friday.

The USDA in a monthly report reduced its ethanol corn use projection by 100m bushels to 4bn bushels for the 2008-2009 crop year.

The forecast accounts for about one third of total US corn production, which the USDA estimates at 12.2bn bushels this year.

In 2007, the US produced a record 13.1bn bushels of corn, 3bn of which was used to make ethanol.

US gasoline demand has slumped due to the weaker economy and a surge in crude oil prices in 2008.

Ethanol is blended in varying degrees in about 50% of US gasoline.

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By: William Lemos
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