On Friday, the U.S. Department of Agriculture’s supply and demand forecast has lowered its estimate of how much of this year’s corn harvest the ethanol industry would use by another 100 million bushels. It was the second straight month the forecast has been reduced reflecting lower indicated plant capacity utilization and lower returns for ethanol producers due to recent declines in ethanol prices and continued strength in corn prices.
During a conference call from the Minneapolis Grain Exchange following the report release on Friday, market analyst Brian Hoops with Midwest Market Solutions noted that the decrease was in line with market expectations. “Over time in the next 12 months, if you look at the big picture, the trade would anticipate that ethanol usage would expand rather than contract,” Hoops told reporters. “But at this time it was believed that we would see a small contraction of the usage.”
Meanwhile, exports are projected to be a corresponding 100 million bushels higher on tighter foreign grain supplies and strong export sales. At the projected 2.35 billion bushels, 2007/08 exports would be the highest in 18 years.
It’s also interesting to note that USDA’s objective yield data report in this month’s crop forecast indicates that the number of ears per acre in the ten biggest corn producing states is the highest on record, surpassing the previous record set in 2004.
In summary, corn usage for ethanol is lower than expected this year because the market is adjusting, corn exports are higher than ever, and corn yields are higher than ever.
Rural school districts in Kansas are receiving small wind turbines as part of the National Renewable Energy Laboratory’s Wind for Schools Initiative. The Kansas City Wind for Schools Program and the Wind Applications Center at Kansas State University have selected several schools in Kansas’ Concordia School District to receive a Skystream 3.7 wind turbine.
Denmark-based Hendricks Industries says it will build a $32 million plant in Keokuk, Iowa… the fifth wind turbine equipment maker to locate in the state that is also becoming a leader in wind energy production.
Surprise, surprise… petroleum giant Texas has cut some of the state’s incentives to biofuels makers. 
Rep. David Swinford, a Republican lawmaker from West Texas who wrote the original legislation, said Texas was betting the state’s future on “a depleting entity” by ignoring alternative fuels.
The U.S.’s first wholly-owned canola biodiesel plant has opened near Velva, North Dakota. The ADM plant is right next to ADM’s crushing facility and will produce 85 million gallons of biodiesel when it’s fully operational.
“This is an exciting time for North Dakota,” said Sen. Kent Conrad, D-N.D. “Our state has the potential to serve as the nation’s powerhouse. North Dakota’s vast resources can be used to reduce our nation’s dependence on foreign oil, control energy prices and grow our state’s economy. This plant in Velva is leading the way.”
The plant will use the equivalent of 600,000 acres of the state’s canola crop… a fact not lost on North Dakota’s Governor John Hoeven:
Kansas flex-fuel motorists can take advantage of bargain prices while pumping up the local economy at an E85 grand opening in Manhattan, Kansas on Friday. E85 will be available for $1.85 a gallon at the 
Next week, on Tuesday, Kum & Go, the 
“This event is meant to celebrate ethanol use in Iowa and to ramp up excitement for ISU’s homecoming week,” said Jerry Main, a corn grower and chairman of the Usage and Production Committee at Iowa Corn. “This event marks a great set of anniversaries: Iowa State is celebrating 150 years and Iowa Corn has been promoting ethanol for 30 years. I am also glad to see the partnership between Iowa Corn and Kum & Go benefiting Iowa consumers.”
“Switching to the new labels is voluntary but it enables fuel retailers to capitalize on growing consumer awareness and the national brand-building activities that are being spearheaded by EPIC,” said White. “More and more consumers are seeking out ethanol-enriched fuel and this branding program will help consumers find it simply by looking for the brand image that will be consistent from pump to pump and from city to city across Illinois — and, eventually, across the entire United States.”
A 
U.S. Senator Charles Grassley (R-IA) was among those attending a a grand opening and open house this week at Magellan Midstream Partners’ biodiesel blending facility in Mason City, Iowa.
“This is a perfect example of cooperation between energy companies — of companies working arm in arm instead of in competition with one another to solve a problem,” said Grassley.