This month’s WASDE report, released by USDA assumed that ethanol demand would exceed livestock feed demand for the first time. Matt Hartwig of the renewable Fuels Association says t – a close examination of the facts shows this not to be the case. Hartwig says – USDA is either finding ethanol production or they are using out of date ethanol yields. USDA is reporting there will be more than 14.1-billion gallons of ethanol production for the 2010/2011 marketing year. The RFA says calendar year 2011 ethanol production is actually on pace for 13.7 billion gallons.
Hartwig says the USDA estimate does not properly account for the 1/3 of each bushel entering an ethanol biorefinery that is returned to the livestock feed market. Even if USDA’s estimates are correct, which they likely are not, the total net corn use for ethanol is 3.3-billion bushels.