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.