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Winter rye ( Secale cereale L.) is becoming increasingly important as substrate for biogas production in Central Europe. Dry matter yield has evolved as a breeding goal comparably important to the traditional grain yield. We analyzed the covariation between both traits and tested other agronomic traits for their correlation to dry matter yield that could be used for prediction of biomass yield. A set of 258 experimental hybrids were tested for dry matter yield harvested at late milk stage and grain yield harvested at full ripening at three to four locations in Germany in 2011 and 2012. We observed a wide range of dry matter yield (10-24 Mg ha) and grain yield (6-15 Mg ha) among testcross progenies. Genetic variances were significantly ( P < 0.01) different from zero for all traits. High entry-mean heritabilities (0.92-0.94) were found for plant height measurements and moderate heritabilities for grain and dry matter yield (0.52 and 0.49, respectively). Relative efficiencies for selection of dry matter yield estimated by second (EC 51-55) and third (EC 73) measurements of plant height were 1.24 and 0.98 respectively, compared to 0.52 for grain yield. Indirect selection for high dry matter yield using late plant height measurements should be successful. Using grain yield for indirect selection was less effective. The observed broad genetic variation for biomass yield in elite hybrid rye gives good prospects for the use as a resource of renewable energy. Plant height is a good predictor of dry matter yield but should be selected together with improved lodging resistance. [ABSTRACT FROM AUTHOR]