HOUSTON (ICIS)--US fuel ethanol futures fell again on Monday to record lows, surpassing the previous records.
Front month April ethanol futures settled at 88.3 cents/gal as concerns around the future of the summer driving season mount.
The US industrial ethanol market continues to tighten amid increased demand for hand sanitzers.
The coronavirus has made sanitzers and disinfectants in high demand, resulting in pressure from producers to produce more.
Some fuel ethanol producers are now switching to produce ethanol for sanitizers as the Alcohol and Tobacco Tax and Trade Bureau (TTB) created exemptions allowing certain alcohol fuel permit holders to sell industrial ethanol for use in the production of hand sanitisers.
Although not all fuel ethanol plants are built to able to shift to industrial production and the ones that are can be complicated to transfer.