Analysts are raising their projections of how much of the U.S. corn crop will go into ethanol production. While the US livstcok herd is getting smaller, requiring less corn for feed, USDA is looking at very strong use of corn for ethanol, taking it up antoher 2.5% up to 4.3 billion bushels.
Ag Outlook Board Chair Gerald Bange says if you look at ethanol production numbers, October and November were record production months, the return to ethanol producers were good and they did take advantage of that.
Bange goes on to say the goal is to produce 15 billion gallons of ethanol by 2015. He goes on to say that even with record production numbers, we’re still unlikely to make the 15 billion gallons because gasoline production is going down, not up.