US ethanol exports reach all-time high

In the US, 92.2 million acres of corn will be planted for the purpose of producing ethanol, while 85.1 million acres of corn will be harvested, with a yield of around 158.7 bushels per acre. These are figures according to the US Department of Agriculture (USDA).

'American farmers appear poised to once again respond to market signals and increase their productivity without needing to convert non-agricultural land to cropland,' Geoff Cooper, the vice president of research and analysis at the Renewable Fuels Association, says. 'Obviously this is USDA's first bite at the apple and a lot can change between now and the fall that could make the crop larger or smaller. Nevertheless, by all indications, it appears that farmers are prepared to supply enough corn to meet demand and add to surplus levels.'

Corn planting has been delayed so far this year due to heavy rainfall. However farmers are reported to have progressed well in recent weeks. According to Cooper, the relationship between when a crop was planted and final yields has insignificant in past years.

And in addition to farmers meeting US demand, it was reported on 11 May 2011 that 201 million gallons of ethanol has been exported to destinations around the world in the first three months of 2011 alone. This is the same figure for 2010's total exported product and almost double that exported in all of 2009.

'Artificially constrained markets in the US and fears of instability in the policies that impact domestic ethanol production and use are forcing ethanol producers to seek other markets,' explains Cooper. 'As a recent academic report noted, ethanol kept gasoline prices $0.89 (€0.63) per gallon less than they otherwise would have been in 2010. it makes little sense that we are exporting our best cure for higher gas prices while American's pay $4 for gasoline at the pump. Yet, until we eliminate artificially barriers to greater ethanol use domestically, export markets present real demand opportunities that our industry will continue to explore.'