Ethanol demand has been the biggest driver of the corn market. That’s why the weekly report from the Energy Information Administration is being closely watched by traders. The latest report shows ethanol production for the week ending May 8 at 617,000 barrels per day. That’s up three percent from the previous week. Ethanol stocks are down five percent from the previous week at 24.2 million barrels. “The ethanol situation, lack of production and demand is the biggest problem for the corn market as of late,” says Joe Vaclavik, president, Standard Grain. “We’re grinding corn for ethanol at 60 percent of the pace we were one year ago. Things have shifted because of the virus and because of the lack of demand for corn via the ethanol industry. We’re closely watching weekly reports for signs of improvements in stocks and production.”
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