USDA overestimates corn-to-ethanol use: trade group

WASHINGTON (Reuters) – U.S. ethanol refiners are unlikely to use as much corn in the coming year as the government estimates due to weak margins and high corn prices, a trade group said on Friday.

U.S. ethanol refiners probably will consume 3.8 billion bushels of corn in the next 12 months to make the alternative motor fuel, compared with the Agriculture Department estimate of 4.1 billion bushels, or a third of the 2008 corn crop. The 2008/09 marketing year opened on September 1.

“We think probably based on internal numbers … somewhere in the 3.8 billion (bushel) range,” said Matt Hartwig of the Renewable Fuels Association.

Reuters