Corn Rally Gets Lift With U.S. Road Trips Stoking Biofuel Demand

May 03, 2021

By Kim Chipman

Corn’s stunning price rally is getting an extra boost as more U.S. drivers return to the open road.

Gasoline demand is on the rise, which means corn-based ethanol consumption is up too after a tough year in which the beleaguered industry was forced to shut down plants as pandemic restrictions slashed automobile travel.

“As driving recovers, as the economy recovers, we’re going to use more ethanol, and so that’s been bullish,” Scott Irwin, chair of agricultural marketing at the University of Illinois at Urbana-Champaign, told Bloomberg Television on Monday.

Total vehicle interstate miles traveled in the week ended April 18 jumped 85% from the same period a year ago, according to the U.S. Transportation Department. Along with more car trips, Biden administration plans to fight climate change could boost usage of biofuels. It’s all good news for American corn farmers, who have seen crop prices more than double in the last 12 months.

ethanol prices in the U.S.

Prices of biofuel are surging faster than gasoline amid economic recovery
Spot ethanol prices in the U.S. are at the highest level since 2014 and are surging faster than the gasoline it’s blended with. In Chicago yesterday, regular spot gasoline was $1.96 a gallon, compared with $2.39 for ethanol, according to data compiled by Bloomberg.

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Video: Dr. Emerson Nafziger: Nitrogen Fertilizer Rates for Corn

The Crop Science Podcast Show, Dr. Emerson Nafziger from the University of Illinois breaks down decades of nitrogen research. From the evolution of N rate guidelines to how soil health and hybrid genetics influence nitrogen use efficiency, this conversation unpacks the science behind smarter fertilization. Improving how we set nitrogen fertilizer rates for rainfed corn is a key focus. Discover why the MRTN model matters more than ever, and how shifting mindsets and better data can boost yields and environmental outcomes. Tune in now on all major platforms!

"The nitrogen that comes from soil mineralization is the first nitrogen the plant sees, and its role is underestimated."

Meet the guest:

Dr. Emerson Nafziger is Professor Emeritus of Crop Sciences at the University of Illinois at Urbana-Champaign, with degrees in agronomy from Ohio State, Purdue, and Illinois. His research has focused on nitrogen rate strategies and crop productivity. He co-developed the Maximum Return to Nitrogen (MRTN) model, which is widely used across the Midwest. His research spans N response trials, hybrid interactions, crop rotation effects, and yield stability.