Business & Investment

Economists expect a strong and sustainable ethanol market

news

Economists expect a strong and sustainable ethanol market

Agricultural economists say ethanol refiners could quickly break the week’s production record.

Ben Brown is a member of the Institute for Food and Agriculture Policy, University of Missouri.

“Current ethanol prices support the ethanol margin and really encourage ethanol facilities to produce as much ethanol as possible and flush as much corn as possible into those facilities,” he said.

The refiner produced 1 million barrels and 170,000 barrels per day with the second highest production two weeks ago. Production fell last week, but Brown expects production to continue to grow.

“Ethanol prices are trading at their highest levels since March 2014,” he said. “So this was something that really provided ethanol producers with a great motivation to increase production and keep it at a sustainable rate.”

The US Energy Information Administration said ethanol production was higher than in 2019 before the pandemic for the past six weeks in a row.



Economists expect a strong and sustainable ethanol market

https://brownfieldagnews.com/news/economist-expects-sustained-strong-ethanol-market/ Economists expect a strong and sustainable ethanol market

Back to top button