Ethanol Industry Will Have Higher Demand for Corn in 2014/15

Because American corn yield will create higher record in 2014, the market will pay more attention to corn consumption prospect, the potential consumption index and ethanol and feed consumption speed.
　　
First, let’s analyze American ethanol industry demand for corn this year and the next year. In 2013/14, the corn usage for ethanol industry kept increasing, which reversed the sharply declining situation. This is due to domestic increasing ethanol consumption, increasing export and decreasing ethanol import. Meanwhile, the ethanol storage also needs supplement. Based on the ethanol yield data of American Energy Information Administration from September 2013 to May 2014, American ethanol yield will reach 141 million gallon in 2013/14. This means American ethanol industry has more corn consumption in 2013/14.　

In 2014/15, American ethanol yield may be affected by the trade surplus and domestic consumption support. But once the ethanol storage increases, it will have unfavorable influence to ethanol production. Because ethanol has low price compared with gasoline, and American ethanol price is also lower than Brazilian gasoline, these factors will help American ethanol trade realize surplus.
 

Then, you may ask what relations on earth does ethanol production and the corn have and what should we notice in ethanol production with corn? Corn can be used to produce ethanol. And corn without germs can reduce pollution risk for the alcohol technology, reduce sugar degree loss, alcohol fermentation raw material processing capacity and bath solution discharge. Meanwhile, corn without germs can directly reduce alcohol or ethanol production cost. If we choose co-production corn germ extraction line, then we can save the equipment input 25-30%. We can save the whole milling section, save fermentation section input 30%, distillation section input 25%, and distillers’soluble processing input 30-40%. Corn without germs can also help to save the alcohol equipment pipeline maintenance charge at least 90%. At the forepart of the alcohol engineering, dry method corn germ extraction can improve the comprehensive benefits largely.