World Grain - May 2020 - 30

©Jim Barber - stock.adobe.com

today, as fuel demand has collapsed in response to
COVID-19, and it is clear we have a long and bumpy
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"Corn demand and prices have plummeted as plants
have idled, jobs are being lost, and rural communities
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Ethanol use is down 50% compared to this same
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In response to declining usage, ethanol production
could drop by 3 billion gallons for the year as a whole,
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"This cutback is unprecedented in its depth and
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Several of the nation's largest ethanol producers announced closings, including POET, which idled production at three plants and delayed start-up at another, amountLQJWRPLOOLRQJDOORQVRIHWKDQROSURGXFWLRQ2Q$SULO
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dry corn ethanol plants for four months and would reduce
the ethanol grind at its corn wet mill plants and rebalance
grind to produce more industrial alcohol for the sanitizer
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its Colwich, Kansas, US, ethanol plant for an extended
maintenance period and shut down the four facilities
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Schmidhuber did not have comforting words for the
global biofuels industry, speaking several days before
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"I think perhaps it is the beginning of the end for a
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comes to pass, we will see a change in relative prices
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remember that price ratios of wheat and maize used to
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WKLQN\RXZRXOGVHHDUHWXUQWRDPXFKZLGHUUDWLR´

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"merchandisers/exporters assess what ethanol/DDGS
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6WLOOWKHZHHNRI$SULOZDVWKHWKLUGFRQVHFXWLYH
week that the DDGS/cash corn ratio reached a new
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"The lack of availability really came through in the
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The DDGS likely will be replaced with corn and soyEHDQPHDO
"It's just a tough situation for the ethanol industry
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In response to DDGS shortages as well as rendering products from meat processing facilities that closed
due to workers testing positive for the virus, US feed
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but it remains a localized supply chain issue, not wideVSUHDGDFURVVWKHFRXQWU\´/HDK:LONLQVRQYLFHSUHVL-

FEED CONCERNS
:LWKHWKDQROSURGXFWLRQFXWLQKDOIVRWRRLVWKHSURduction of the co-product DDGS, which is used in
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when a large portion of ethanol started to idle capacity,
5\DQ/H*UDQGSUHVLGHQWDQGFKLHIH[HFXWLYHR൶FHURI
the US Grains Council (USGC) told World Grain,QLWV
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World Grain - May 2020

Table of Contents for the Digital Edition of World Grain - May 2020

World Grain - May 2020 - 1
World Grain - May 2020 - 2
World Grain - May 2020 - 3
World Grain - May 2020 - 4
World Grain - May 2020 - 5
World Grain - May 2020 - 6
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https://www.nxtbook.com/sosland/wg/2014_09_01
https://www.nxtbook.com/sosland/wg/2014_08_01
https://www.nxtbook.com/sosland/wg/2014_07_01
https://www.nxtbook.com/sosland/wg/2014_06_01
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https://www.nxtbook.com/sosland/wg/2014_04_01
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https://www.nxtbook.com/sosland/wg/2013_12_01
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https://www.nxtbook.com/sosland/wg/2013_10_01
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https://www.nxtbook.com/sosland/wg/2013_08_01
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https://www.nxtbook.com/sosland/wg/2013_01_01
https://www.nxtbook.com/sosland/wg/2012_12_01
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https://www.nxtbook.com/sosland/wg/2012_07_01
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