Some interesting numbers from the USDA’s monthly World Agricultural Supply and Demand Report. For the first time (I think), ethanol will be the largest consumer of corn (by sector) in the U.S. In the past, feed for livestock has been the largest consumer. Here are the numbers…
Food, seed, and industrial: 10.6%
Because of the heavy flooding in the corn belt this spring, supplies should be pretty tight this year, and we can expect this to push up prices for corn. For those interested in the food/fuel debate, the strong domestic ethanol demand for corn alongside these supply disruptions could have interesting implications.