As U.S. ethanol production expands and President Bush touts alternative energy sources to reduce dependence on imported petroleum, grain buyers around the world are wondering if U.S. farmers can produce enough to meet everyone’s needs.

In fact the USDA has predicted ethanol production will account for more U.S. corn than exports in 2007. The USDA estimates that U.S. corn exports will reach 2 billion bushels in the 2006/07 marketing year, while ethanol production will consume 2.15 billion bushels that year.

However, U.S. corn importers have no need to worry. With near-record corn production in 2005 – exceeded only by the 2004 crop – the United States is positioned to remain a reliable source for international grain buyers for years to come as U.S. farmers improve production.

In addition, distillerÌs dried grains with solubles (DDGS), a co-product of the ethanol distillation process, is becoming a regular component of feed rations as feed mill operators and livestock producers become familiar with the nutritive properties of this feed ingredient. Ethanol production is expected to climb to 5.1 billion gallons this year and 6 billion gallons by 2007, according to the Renewable Fuels Association.

EXCERPTED FROM THE USGC’S GLOBAL UPDATE NEWSLETTER BY PERMISSION OF USGC