Demand continues strong for US maize
Strong maize exports from the US, coupled with very high usage for ethanol production, are current features of the US grain market. Estimated ethanol production for the 2016/2017 marketing year ended up 4%, compared with the previous year, and 12% above the most recent five-year average.
The marketing year closed in August, with strong demand for maize for ethanol production, and the new season opened with equally strong production. US data puts ethanol production at 44.520 million US gallons per day (168.5 million litres) in the first week of September. This is reported as being the second highest weekly production number on record. That output level is put at 6% above last season and 17% above the five-year average.
While overall maize supply is high at the moment, that level of ethanol production, if maintained for the year, would consume a considerable amount of maize - an estimated 5.8 billion bushels or 147Mt.
Meanwhile, corn production numbers in the US are likely to be decreased, following a drop of four points in the most recent crop condition report.