Corn ethanol setback “is not expected” with EPA proposal

“The demand for corn for ethanol production appears to be on solid footing for the next 18 months,” says economist Darrel Good of U-Illinois. “While growth may be limited, a setback is not expected.” Writing at farmdoc daily, Good says ethanol consumption was 13.25 billion gallons last year. Gasoline consumption is running above projections this year, so ethanol consumption is on the rise as well, above 5 billion bushels a year. “At this juncture, it appears that domestic consumption of conventional ethanol in 2015 and 2016 will likely not decline from the 13.254 billion gallons consumed in 2014 if domestic gasoline consumption remains robust,” says Good. And exports should remain steady at 850 million gallons a year, so corn-for-ethanol demand should not decline.

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