Posted on 10/10/2008 8:21:17 AM PDT by thackney
The US Department of Agriculture on Friday trimmed its estimate for the amount of corn to be used for ethanol production by 100 million bushels, citing weakening gasoline demand.
"Ethanol corn use for 2008/09 is projected 100 million bushels lower as reduced gasoline consumption is expected to slow the expansion of blending modestly over the coming months," the USDA said. The cut resulted in a forecast of 4 billion bushels in the agency's monthly crops report.
The agency maintained a projected use of 3 billion bushels of corn for the 2007-2008 period.
Just last week, volumes of conventional gasoline blended with ethanol in the US had hit a record high of 3.411 million b/d on a long streak of increased ethanol use, according to statistics released Wednesday by the Energy Information Administration.
Meanwhile, corn prices will continue declining, USDA said.
"The season-average farm price is projected at $4.20 to $5.20 per bushel, down 80 cents on each end of the range. Sharp declines in futures and cash prices over the past month have dramatically reduced price prospects for corn that was not forward priced," the agency added.
The USDA also forecast soybean production of 2.983 bushels for 2008-2009, up from 2.934 billion bushels in its September estimate.
"Prices for soybeans and soybean products for 2008/09 are projected sharply lower this month. The US season-average soybean price range for 2008/09 is projected at $9.60 to $11.10, down $2 on both ends of the range."
FACT SHEET: National Biofuels Action Plan
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB/.cmd/ad/.ar/sa.retrievecontent/.c/6_2_1UH/.ce/7_2_5JM/.p/5_2_4TQ/.d/2/_th/J_2_9D/_s.7_0_A/7_0_1OB?PC_7_2_5JM_contentid=2008%2F10%2F0258.xml&PC_7_2_5JM_parentnav=LATEST_RELEASES&PC_7_2_5JM_navid=NEWS_RELEASE#7_2_5JM
October 7, 2008
In an effort to meet President Bush’s “Twenty in Ten” goal and meet the Renewable Fuel Standard (RFS) targets in the Energy Independence and Security Act of 2007 (EISA) the Biomass Research and Development Board (the Board)-co-chaired by the U.S. Department of Agriculture (USDA) and the U.S. Department of Energy (DOE)-developed the National Biofuels Action Plan (NBAP) to accelerate the development of a sustainable biofuels industry.
To meet increasing demand, we must continue to advance solutions that improve our energy security and reduce greenhouse gas emissions - our economic competitiveness, national security, and environmental health depend on it.
Biomass Research and Development Board
The Board determined that meeting aggressive production targets requires enhanced interagency collaboration among the senior decision makers from 10 federal agencies and the White House. The NBAP identifies key research challenges and defines clear interagency actions critical to developing the science and technology needed to make next-generation, cellulosic biofuels cost-effective so as to grow a biofuels industry and supply chain in a sustainable manner.
Corn, soy futures ping
Good. This should have a significant effect on food prices. Could this also collapse the ethanol industry? They recently put a lot of money into building brand new infrastructure. I’m sure they have plants with high overhead.
Don’t worry, I’m sure if our current subsidies are not enough, they will get an additional bailout.
Sadly, this isn’t sarcasm...
D’oh! You are so right.
Very interesting thanks for posting. At the gas station the other day, the E-85 and regular unleaded were the same price.
Feed the un-used corn to the polar bears, help pelosi save the planet. Throw in a little for the spotted owl or some other fairy tail.
i hope so. I’m tired of them holding the country hostage with ethanol subsidies
not if mccain wins
GOOD! Perhaps this return to sanity will ease the severe inflation of food prices.
“Meanwhile, corn prices will continue declining, USDA said.
“The season-average farm price is projected at $4.20 to $5.20 per bushel, down 80 cents on each end of the range”
Good news if you have a corn stove.
The light at the end of THIS blind tunnel is the mirror at the DEAD END! Ethanol CANNOT substitute - even partially - for either jet fuel or diesel, for several technical reasons. Instead, we need alternate sources for HYDROCARBON fuels, and The best candidate for that is likely to be oil from algae, most likely bio-engineered and grown in artificial environments, nourished by atmospheric and industrial waste CO2 supplemented with sewage and agricultural runoff.
I am convinced that the transportation fuel(s) of the future, whether decades or centuries - will be nearly indistinguishable from what we use today. Except, perhaps, that they will be purer, cleaner, and more uniform in composition. And ethanol will return to its G_d-given purposes - cocktails and cooking.
The result of all of this will be the continuing of the ethanol plants seeking bankruptcy protection
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