The Renewable Fuels Association is also concerned with the record corn crop, calling this month’s WASDE report a wake up call.
“Demand is not keeping up with the corn supply, period. And we knew that was a problem heading into harvest. And then, of course, we saw these huge numbers printed yesterday by USDA, and we think that should serve as a wake-up call to both Congress and the administration,” said RFA’s Geoff Cooper.
Cooper is calling on Congress to remove the regulatory barriers to higher ethanol blends. He also wants to see updates to pump labeling, saying just a little work could open the gates for U.S. ethanol.
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The lower outlook follows months of drought stress across major winter wheat regions, where some producers have abandoned fields or shifted acres to grazing instead of harvest.
Ethanol plants kept production steady, but softer gasoline demand and lower exports may limit near-term momentum.
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Stronger overseas demand for both fuel ethanol and feed co-products continues to reinforce corn use beyond the domestic market.
