This year’s corn crop is not big enough to meet the entire consumption base that has been built. Prices will have to be high enough to convince some end users to reduce consumption from current levels. Can the pork industry compete with other end users? asked Purdue University economist Chris Hurt.
“The answer is complex and will depend on many factors, including how small the U.S. corn crop is and production in the southern hemisphere this winter,” he said. “Ultimately, the question is how high corn prices have to be to get a sufficient number of end users to reduce consumption.”
The largest competitor for corn in the coming year will be the ethanol industry where USDA analysts currently estimate 5.1 billion bushels of corn use, he said.
“To meet the mandated domestic Renewable Fuels Standard (RFS) will require about 4.7 billion bushels with nearly 400 million additional bushels used to make ethanol that will be exported.… Continue readingRead More »