The green future is here:
For the first time ever, more of the corn crop may go into gas tanks than into the stomachs of cattle and poultry destined for kitchen tables.
The prediction drew little response last week when it was released by the USDA in its Crop Production and Supply/Demand Report for the 2011 crop season. The USDA kept its prediction for ethanol production demand for corn at 5.05 billion, but lowered demand projections for livestock feed by 100 million bushels to 5 billion bushels.
That fuel now tops livestock as the primary user of corn struck at least one observer as noteworthy.
“That's a first-time-ever type of change,” University of Missouri Extension economist Ron Plain said in a statement released by the university.
“For forever,” Plain said, “ feed was the largest single use of corn.”
The story observes, however, that some call the news little more than a footnote even though it comes at a time when "criticism that pro-ethanol subsidies and policies are raising food prices globally seems to be reaching a crescendo." Don't bother us with facts, we're doing the right thing here!
Comments
Demand for corn may drop considerably over the next couple of years. Cattle producers are shipping off herds they cannot feed from Texas and other draught stricken states. In simple terms, herds are shrinking. The good news is China and Korea like hogs and chickens which eat corn. In China they will feed their pigs wheat when it is economically viable.
The elimination of the ethanol gas credit does not eliminate the federal mandate to mix a specified percentage of fuel with ethanol. I don't understand this since I as the consumer choose if I want gas with ethanol or pure gas. I always go with pure gas since it is cheaper per mile to operate my car.
Corn is reaching a high, but who is going to buy ethanol blended gas if is 10 to 15 cents more per gallon 10% blend and E-85 when it is $1 more? Will the federal government mandate we all buy ethanol blended fuel?
Southern state corn harvest yields are down 40% due to heat and no rain. I know IL, IN, OH all need rain to help finish the last bit of the corn and bean season. My gut tells me we will see smaller yields in corn and beans than projected on August 11.
I don't know how you're investing your money, but I'm seriously thinking about buying a second deep-freeze and filling it with pork. The price of pork is headed north within a few months, and not by a little. Looks like a better idea than putting money into gold.
Beef is headed up, too, but price changes are slower there, as the lifespan of cattle is considerably longer than the six months of swine.