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End of ethanol production streak signals start of another new normal
Illinois ag economist Todd Hubbs suggests the end of ethanol’s three-month streak of week-over-week production increases signals the start of another new normal.
“I’d like to see the (peak) a little bit higher because we’re still basically about 12 to 14 percent below where we’d normally be this time of year. But I think people are not moving around as much.”
He is encouraged by shrinking ethanol stocks.
“But, I think what you’re seeing is as gasoline demand flattens out, and about 10 percent of the gasoline supply is ethanol, the production numbers are sort of flattening out as well. It’s just a direct reflection of the demand we have for gasoline in the country.”
Hubbs tells Brownfield he expects ethanol demand to trend sideways through the end of the year.
