US farm officials may have underestimated the potential for corn use of ethanol plants, leading academics have said, forecasting a far slower rebuild in inventories of the grain.
The Food and Agricultural Policy Research Institute, or Fapri, a much-respected US university network called on by US lawmakers for advice, has forecast that America will not for another eight years see the drop in corn use for ethanol that agriculture officials have factored in for both the current season and 2012-13.
Fapri agreed that "rapid growth in corn ethanol production has slowed", a decline fuelled by the lapse of the blender's tax credit and import duties at the end of last year.
However, the institute forecast that biofuel plants would swallow 120m bushels more of the grain next season than the US Department of Agriculture is counting on.
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