The collapse in the demand of crude oil continues to drive the ag commodities lower. “The production cut was by 10 percent, but some people are saying demand for gasoline dropped 30 percent,” explained Clayton Pope, president, Clayton Pope Commodities. “This is a drop in the bucket compared to what we’re up against. The ramifications for ethanol are just horrific.” Pope said the trade was looking for a 5 percent reduction in ethanol production but this morning’s report from the Department of Energy show a 15 percent decline in ethanol production coupled with record large supplies. “We had the smallest ethanol grind in history this past week. More and more plants are idling. Supplies are piling up.”
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