Crude Oil Makes New Low, Ethanol Tumbles & is Corn too High
That new #crudeoil low is not good for #ethanol or #corn. I did two interviews on this at the end of last week. One with Eric Mosbey during Commodity Week and one with Geoff Cooper from @EthanolRFA @ScottIrwinUI & @jt_hubbs wrote an @farmdocDaily article, too.
The price of crude oil has reached a new contract low below $20 a barrel.
The ethanol industry is struggling under the weight of #COVID19 and the crude oil price war. I spoke with Geoff Cooper, President and CEO of the Renewable Fuels Association about the situation. He says with crude in the $20s, corn is too high priced for ethanol production.
The estimated reductions in #ethanol use are 143 million gallons in March, 391 mln in April, and 207 mln in May, for a total reduction of 741 million gallons or 256 mln bushels of read-reduction-estimate-with-caution #corn write @ScottIrwinUI & @jt_hubbs.
link to @farmdocDaily article
Lincolnland Agri-Energy’s Eric Mosbey explains how #COVID19 and the low price of #crudeoil is affecting #ethanol plants like the one he runs. He also discusses what it means for #corn and feed coproducts.