Washington, 12 May 2010

Ethanol makers will use 4.6 billion bushels of this year's corn crop to produce the alternative fuel during 2010/11, the U.S. Agriculture Department estimated on Wednesday. A 2007 law guarantees renewable fuels will have 12 billion gallons of the U.S. motor fuel market this year and 12.6 billion gallons in 2011. An ethanol trade group says production is likely to mirror the federal mandate because the fuel market effectively is saturated at the 10% blend rate for ethanol.

The government is expected to rule later this year on an ethanol industry proposal for a 15% blend rate.

"Corn ethanol use, projected at 4.6 billion bushels, is supported by rising federal biofuels mandates and strong blending incentives that continue to boost ethanol usage," said USDA.

USDA also forecast 2.9 billion lbs of soybean oil would be used during 2010/11 to make biodiesel. The marketing year ends on Aug. 31 for corn and on Sept. 30 for soybean oil.

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