Ethanol Industry Prices Fall to Record Low
Analysts expect 20% to 25% drop in consumption in near term
The ethanol industry is enduring unprecedented economic hardship as a consequence of the coronavirus pandemic. But the industry was facing demand destruction and challenging economics before COVID-19 hit and motor fuel demand started plummeting, reports the Wisconsin State Farmer.
Most analysts today are expecting about a 20% to 25% drop in consumption in the near term.
President and CEO of the Renewable Fuels Association (RFA) Jeff Cooper said in a March 19 conference call that the oil price war between OPEC and Russia, ongoing trade disputes, and small refinery exemptions under the Renewable Fuel Standard have "conspired to create not just a perfect storm for ethanol, but a perfect tsunami."