HOUSTON (ICIS)--US spot fuel ethanol prices rose this week as demand continues to show signs of a recovery, although not as quickly as market participants had thought.
As US tensions with China mount over the weakening commitment to the Phase One trade agreement and concerns over Hong Kong, market participants fear that China will shift to buying Brazilian ethanol over US made.
The US corn crop is mostly planted for this season, largely ahead of schedule and before 2019 planting was finished.
About 40-50% of corn grown in the US goes into ethanol production.
Ethanol is used as a gasoline blendstock, in pharmaceuticals, and in food and beverage applications, such as hand sanitizers and vodka.