-Corn for ethanol usage continues to support USDA annual demand estimate
-Dec corn for ethanol usage just shy of all-time record
USDA reported 485.8 million bushels of corn was used for ethanol production in December vs 466.9 million in November, 431.7 million bushels last year December and just below record Dec usage of 487.7 million bushels in 2017 (which was also the all-time monthly record since 2014), bringing Sept-Dec 2021/22 marketing year-to-date usage to 1.828 billion bushels, up 7.6% (129 million bushels) from 1.699 billion last year. Based on the USDA’s 5.325 billion bushel annual estimate, January-August corn for ethanol usage would need to total 3.497 billion bushels vs 3.329 billion last year, a 5.1% increase. While ethanol margins have been under considerable pressure of late and ethanol stocks have risen sharply, U.S. ethanol production has still run at an average of 9.8% above year ago levels over the last three weeks, easily continuing to justify the USDA’s annual usage target for now. This month’s data again reflected minimal usage of sorghum for ethanol usage as pretty much has been the case for the last year+. The estimated ethanol/corn yield in December held mostly steady at 2.88 gallons/bushel vs 2.91 in November, with the average yield through the first four months of 2021/22 of 2.89 nearly identical to last year during the same period. USDA reported 2.073 million tons of DDGS were produced in December vs 1.997 million tons in November and 1.787 million last year December, bringing 2021/22 corn marketing year-to-date DDGS production to 7.780 million tons vs 7.151 million tons last year.
