Corn prices are moving higher even as the USDA projects a record harvest of nearly 17 billion bushels this fall.
Geoff Cooper, president and CEO of the Renewable Fuels Association (RFA), said ethanol demand is a key driver. “Ethanol is helping to keep a floor under corn prices right now,” Cooper said. “We’re on pace to make a record amount of ethanol this year, which means we’re going to use a record amount of corn—about 5.6 or 5.7 billion bushels.”
The U.S. Energy Department reports ethanol exports are up 36 percent. Cooper said about 12 to 13 percent of U.S. ethanol is being exported, with growing demand from countries including Canada, India, and Japan.
For farmers, that demand is critical as they prepare for a massive harvest. Cooper said ethanol exports alone create demand for nearly 800 million bushels of corn — the equivalent of about a third of Illinois’s crop. He added that communities near ethanol plants often see stronger competition and better local prices for their grain.
Looking ahead, Cooper pointed to year-round nationwide sales of E-15 as a potential game-changer. “If Congress passed this legislation, it would open up a significant new market opportunity, reduce surplus, and positively impact prices,” he said.
Cooper added that E-15 could also help consumers, with prices often 10 to 30 cents per gallon cheaper than regular gasoline.
