Thursday February 01, 2007

US could become net corn importer

peakoil.com -> archive.gulfnews.com :

The United States could shift from the world's largest exporter of corn to a net importer as its burgeoning ethanol industry continues to expand, but in the meantime sales abroad are poised to rise as farmers boost acreage to cash in on decade-high prices.

The demand for corn-based ethanol could be so strong that the United States might one day become a net importer of corn, said Jose Rasco, investment strategist at Merrill Lynch. Calls by President George W. Bush to use 35 billion gallons of renewable fuels by 2017 have many pondering how the country will achieve such a goal. Even Bush acknowledged last week that his plan for a five-fold increase in ethanol use will be constrained by the amount of corn that American farmers can grow.

US exports may decline in the coming years, but other countries are likely to export more corn if prices remain high. Higher corn prices are likely to spur corn plantings in Brazil and make it a regular exporter. Brazil exported about four million tonnes of corn last year. The United States exported an estimated 55 million tonnes. Argentina, currently the second largest corn exporter, is also expected to sell more corn abroad. Argentina exported about 12 million tonnes of corn last year, USDA said.

See also :

1. As corn price rises, so could food bills
2. How energy-positive is ethanol, really?
3. World grain stocks fall to 57 days of consumption

(2007-02-01 13:16:48 SGT) [Energy] Permalink

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