It’s been a challenging year for U.S. ethanol production and tough markets are expected to carry over into next year. According to American Coalition for Ethanol CEO Brian Jennings, U.S. ethanol production and use are off by about two billion gallons on an annualized basis. “Instead of producing 16 to 17 billon gallons, we’ll be producing 14.5 billion gallons and the use will be down significantly. The producers are preparing for more of the same, especially as we see COVID continuing to spread and states threatening to impose additional lockdowns. Thankfully, we do see discipline in the marketplace.” Jennings says this may restore demand, but the tough market is expected to continue going into 2021. This includes the Northern Plains. “Even though we don’t see some of the lockdowns here, it does have a negative impact on production. We’ll also be looking at export opportunities in the next months.”
News Categories
Latest RRFN Podcasts
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.