US Corn Demand Remains Strong as Ethanol Production Rises

The demand for US corn remains strong as ethanol production continues to rise. According to the USDA, nearly 475 million bushels of corn were used for fuel alcohol production in July, a two percent increase from June and four percent higher than the same month last year.

Dry-mill ethanol plants accounted for about 93% of total corn use, while wet milling made up the remaining seven percent. Among co-products, dried distillers grains with solubles (DDGS) production fell one percent to 1.85 million tons, but wet distillers grains containing at least 65% moisture saw a nine percent increase to 1.29 million tons.

USDA's data suggests that ethanol production remains a significant source of demand for US corn. As the biofuel industry continues to grow, it is likely to have a lasting impact on the nation's corn crop.