Ethanol and Food Prices

Jason Bennett
CPS Tangent

I received this email from ARA (Agricultural Retailers Association), very interesting to read thru the attached presentation link. After you click on link, about half way down the page under attachments is RFA_2011 Planting Outlook and Ethanol and Food Pricing, click on this and you will download the Adobe Document,
from about slide 8 on it is very informative. Enjoy.

Outlook for Ethanol and Food Prices
The Renewable Fuels Association (RFA) issued the attached presentation last week detailing the outlook for ethanol and food prices based on USDA’s 2011 Prospective Plantings Report. RFA anticipates that there will be enough acres of corn produced for an estimated 13.8 – 14 billion gallons of ethanol produced in 2011 and 2012. Ethanol production through the first three months of the year has remained relatively steady at 900,000 barrels per day, or 13.78 billion gallons annualized.

RFA explained that USDA expects inflation in food prices of about 3 to 4 percent in 2011. Last year, inflation was less than one percent. RFA noted that overall food price inflation is following normal historic increases.