Ethanol Recovery Threatened by Virus Restrictions
Resurgence of virus and increasing restrictions before holidays threaten to derail comeback in fuel demand
U.S. ethanol production, a main source of demand for domestic corn, has been unusually light ever since March, when the coronavirus pandemic sharply curbed global fuel consumption, reports Reuters.
Ethanol output in recent weeks has very slowly chipped away at its deficit versus prior years, but the resurgence of the virus and increasing restrictions, especially just before the holidays, threaten to derail a comeback in fuel demand.
According to data from the U.S. Energy Information Administration, U.S. fuel ethanol output in the week ended Nov. 13 totaled 962,000 barrels per day, down 1.5% from the previous week’s volume, which was the highest since the week ended March 20.