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.
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