October 5, 2009
EU grains usage for biofuel sharply in 2009-10
Improved ethanol economics will see the European Union use around 9.06 million tonnes of grain for biofuel production in 2009-10, a 61% increase on the year, Rabobank said Friday (October 2).
A combination of rising ethanol prices and falling wheat prices has boosted the outlook for ethanol production in recent months, said the bank.
"EU ethanol capacity utilization is set to increase significantly in 2009-10," said Rabobank.
In the US ethanol economics have also improved as corn prices have fallen, with Rabobank estimated corn used for ethanol in 2009-10 could reach 4,300 million bushels, up from 3,675 million bushels in 2008-09.
