Full Article here: http://www.denverpost.com/business/ci_7445448

This is a followup with more details on a article I posted about a month ago regarding and EPA quote referring to higher blends.

For the skeptics who fear a shortfall of corn and competition between food and fuel, I've also included a link to a new study showing corn supply for 2008 will far outweigh demand.

The U.S. is evaluating whether existing automobiles can safely handle a greater concentration of ethanol than the 10 percent currently blended into gasoline, a finding that would boost demand for the biofuel.

Gasoline containing 12 percent ethanol and 15 percent ethanol is being evaluated for any adverse effects on the automobile fleet, said Alexander Karsner, who heads the Energy Department's efficiency and renewable-energy office. Carmakers don't warranty vehicles beyond the 10 percent standard, known as E10, although Brazil's standard gasoline is 22 percent ethanol, Karsner told reporters Monday in Wilmington, Del.

“We can't get as much into our gas stations as we would like” because of the 10 percent blending limit, Philip New, president of BP PLC's biofuels unit, said Monday at an event sponsored by DuPont Co.

Testing on the effects of E12 and E15 is being conducted by the Environmental Protection Agency, Karsner said. Minnesota has applied to use gasoline containing 20 percent ethanol, and that also will be evaluated, he said.

New USDA Numbers Dispel Food And Fuel Debate; Supply Set to Outpace Demand

Full Article here: http://www.pafarmnews.com/Articles/2...orngrowers.htm
ST. LOUIS, Mo -- The National Corn Growers Association (NCGA) is encouraged by last week’s U.S. Department of Agriculture (USDA) crop production report illustrating that the United States will have enough corn to support the country’s food supply, ethanol, and export uses.

For the marketing year ending in August 2008, the corn supply is projected to reach nearly 14.5 billion bushels, while demand is expected to hit 12.6 billion bushels. USDA estimates the 2007 corn crop will reach 13.2 billion bushels, the largest crop in U.S. history and 25 percent larger than the 2006 crop.

“The USDA World Supply and Demand (WASDE) figures unmistakably dispel the food versus fuel debate,” said NCGA President Ron Litterer. “Clearly, the corn industry is poised to meet the demands for biofuels and will finish the marketing year with one of the highest levels of surplus in the last 20 years.

“U.S. corn growers will continue to be reliable suppliers of both food and fuel,” he added. “Farmers respond to signals from the marketplace. If the market calls for more corn, that’s what farmers will grow.”

Litterer points out some common misperceptions about ethanol. “Ethanol production uses field corn—not sweet corn,” he said. “I continue to be amazed by media reports that suggest ethanol is driving up the cost of sweet corn in grocery stores. The majority of feed corn is fed to livestock, not humans. Roughly 10 percent of field corn is processed directly into human food, like corn flakes.”

Data from the Economic Research Service (ERS)—part of USDA—found that the Consumer Price Index (CPI) for all food is forecast to increase 3.5 to 4.5 percent in 2007. ERS attributed this increase to retailers who pass on higher commodity and energy costs to consumers in the form of moderately higher retail prices. Moreover, the CPI for food increased 2.4 percent in 2006 and, over the past 10 years, has increased at an average annual rate of 2.5 percent (1997-2006).