Ethanol demand seems to be turning a corner
Ethanol demand might be turning a corner.
Global Commodity Analytics president Mike Zuzolo says for the first time in two months, ethanol production moved higher as some states began lifting stay-at-home orders.
“Because we are reopening up, the demand for energy, ethanol (and) biodiesel included, that demand is not an absolute zero number.”
He tells Brownfield that should not be taken lightly considering crude oil prices sunk into negative territory last month before rallying nearly $60 dollars a barrel.
“So when you think about that in terms of percentage lost and then the percentage gained, and the demand destruction that we’ve probably done in the ethanol world, it could’ve been extremely bad had we not had that price recovery.”
Zuzolo says it’s critical for the ethanol market, and commodity prices in general, that the U.S. experiences a strong summer driving and grilling season.