Deutsche Bank Says May Be Too Early for USDA to Cut Corn Usage
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Deutsche Bank AG said it may be too early for the U.S. Department of Agriculture to lower its estimate of corn used to make ethanol.
Corn for ethanol consumption is still in line with the USDA’s forecast even after capacity was idled in the past three weeks, Deutsche Bank said in a report e-mailed today. “Based on our calculations, industry ethanol margins have moved slightly above break-even as reduced capacity has allowed ethanol prices to increase at a faster pace than corn,” it said. “However, capacity will likely stay off line until margins firm to a greater and more sustainable degree.”