US fuel ethanol spot prices widen as inventories fall, demand rises
HOUSTON (ICIS)–US fuel ethanol prices widened this week, as fuel demand continues to rise.
The US Department of Agriculture’s (USDA) outlook for the current corn crop is for record high production, greater exports and larger ending stocks according to the May World Agricultural Supply and Demand Estimate (WASDE) report.
About 40-50% of corn grown in the US goes into ethanol production.
Inventories of fuel ethanol fell week on week, indicating driving demand is picking up again as states continue to reopen.
Four members of the US House of Representatives introduced a coronavirus relief package that includes aid for the biofuels industry.
Ethanol is used as a gasoline blendstock in pharmaceuticals, and in food and beverage applications, such as hand sanitizers and vodka.
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.
Want to learn about how we can work together to bring you actionable insight and support your business decisions?