HOUSTON (ICIS)-- As fuel ethanol demand plummets due to the coronavirus, the US Department of Agriculture (USDA) has lowered its forecasted demand for corn that is used to make ethanol.
The World Agricultural Supply and Demand Estimates (WASDE), a monthly report, said that corn demand for ethanol will be 5.05bn bushels for the 2019-2020 crop season.
Previously, the USDA had said that it would be 5.425bn bushels, a loss of 375m bushels.
Production of fuel ethanol fell by 20% last week, according to the Energy Information Administration (EIA), as plants continuing shutting on low margins due to ample supply and weak demand.
Fuel ethanol demand is now halved as more US citizens are under stay-at-home orders.
The EIA also reported record high levels of fuel ethanol stocks at 27.1m bbl.
Meanwhile industrial ethanol demand continues to soar on increased need for sanitation products in the US while supply is not ample enough to meet demand.
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