WASHINGTON, D.C. (RFD News) — Higher ethanol blending rates are strengthening corn demand while helping lower fuel costs for consumers, according to the Renewable Fuels Association.
The organization found the U.S. ethanol blend rate reached 11.29 percent in May, bringing the 12-month average to just over 10.5 percent, a new record. Ethanol also reduced the finished cost of regular gasoline by about 14 cents per gallon in May, while E15 prices fell 21 cents.
Analysts say stronger ethanol blending could continue supporting corn demand. However, drought remains a major challenge for producers in parts of the western Corn Belt.
Bryan Irey with Crossroads Co-op said Colorado has been dealing with nearly a year of drought, with the state’s northeastern region hit especially hard.
“Well, it has been anything but wet in Colorado for some time. We’re going on about a year’s worth of drought, and we’ve gotten by okay. I would say south of Highway 36 along I-70, it has not been terrible in terms of moisture, but the northeastern quadrant of the state has been just a desert. The irrigated crops look fine, but there has been a lot of damage done to the dryland corn over the last two weeks as our temperatures have been up above 100. I think we’ve even set some records in different parts of the state: 105 to 107 or 108 degrees.”
Irey said dry conditions extend beyond Colorado. In Nebraska’s western Panhandle, he said very little corn was planted this year because irrigation water was not readily available.
