Falling ill: ethanol amid COVID and living in uncertain times
Calling 2020 a challenging year for US ethanol would be an understatement for many in the industry. The rapid loss in demand in an already oversupplied market resulted in a significant amount of facilities closing and reduced production.
As demand starts to rebound, logistical issues moving product out of the Chicago region has resulted in a steep backwardation. Meanwhile, ethanol continues to price at a premium to gasoline, triggering many to reconsider whether ethanol is the best source of octane. On the policy side, small refinery exemptions remain a contentious issue, with the Environmental Protection Agency yet to decide on numerous retroactive applications. On the feedstock side, corn planting looks to be much lower than the initial US Department of Agriculture estimates, adding upward support to ethanol prices.
The impact of COVID-19 is not only evident in domestic demand but international demand as well, with US ethanol exports relying on these markets to import excess US production.
Join S&P Global Platts editors and analysts in this vibrant webinar to learn the latest trends in US ethanol as well as the most current outlook for 2020 and 2021.
Associate Pricing Director, Agriculture – Americas
S&P Global Platts
Advisor, Global Biofuels Analytics
S&P Global Platts
Managing Editor, Americas Biofuels and Sugar
S&P Global Platts
Senior Analyst Agriculture, Analytics
S&P Global Platts
Hear from Platts specialists about what to expect for US ethanol demand in the remaining months of 2020 See how the ethanol industry is navigating the pandemic from a US and global perspective Find out how planned river maintenance is impacting ethanol market structure Learn about Platts' new California ethanol assessments |
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