Andersons, one of the U.S.' major players on the ethanol production scene, has started mixing cheaper soft red winter wheat into its corn-based biofuel. This move, according to Andersons, will drive down costs and lessen demand for corn. Andersons says the soft red winter wheat harvest is peaking, so the stuff is available in mass quantities. It's estimated that Andersons is currently mixing ten percent wheat in with corn.

Some industry analysts were initially surprised by the move, but most now see it as a savvy strategy for dealing with corn-related issues. Rich Feltes, an analyst at R.J. O'Brien in Chicago, told Reuters that, "With wheat cheaper than corn, they will likely continue to fit it into their mix to the extent their equipment will allow." And Chuck Woodside, chairman of the Renewable Fuels Association, says that:
Corn is going to be tight. If you have the capacity to be able to say over the next year you were going to be able to use a blend, you might be able to justify that.
It's been estimated that the ethanol industry uses 40 percent of the U.S.' corn, so adding an alternative crop into the mix seems logical to us.

[Source: Reuters | Image: User:H20 – C.C. License 2.0]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • From Our Partners

    Share This Photo X