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What do sky-high corn prices mean for ethanol producers? — Quartz


May 6, 2021
In late April, 2020, as the pandemic descended on the US, demand for gasoline crashed to historic lows. Archer Daniels Midland (ADM), the agricultural commodities giant, decided to idle two of the country’s biggest plants producing corn-based ethanol mixed into oil-based fuels to reduce their carbon intensity. ADM’s chief biofuels rival, POET Inc., also shut down several plants. Overall, the bio-fuel accounts for about 10% of every gallon of gas pumped in the US.
A year later, American drivers are back at the gas pump, and ethanol plants are back online. ADM re-opened its plants in early April; POET’s plants re-opened in August 2020 but only hit full production capacity in April. Then, just as ethanol’s road ahead was beginning to look clear, another unanticipated obstacle emerged: the spot price of its key ingredient corn surged to its highest levels in a decade in May. ....

United States , Juan Ricardo Luciano , Nicholas Paulson , Joe Biden , Naomi Blohm , University Of Illinois , Daniels Midland , Total Farm Marketing , Ricardo Luciano , ஒன்றுபட்டது மாநிலங்களில் , ஜுவான் ரிக்கார்டோ லூசியானோ , நிக்கோலஸ் பால்சன் , ஓஹோ பிடென் , நவோமி ப்லோஹ் , பல்கலைக்கழகம் ஆஃப் இல்லினாய்ஸ் , டேனியல்ஸ் மிட்லாண்ட் , மொத்தம் பண்ணை சந்தைப்படுத்தல் , ரிக்கார்டோ லூசியானோ ,

What do sky-high corn prices mean for ethanol producers?


What do sky-high corn prices mean for ethanol producers?
Quartz
3 hrs ago
© Provided by Quartz
In late April, 2020, as the pandemic descended on the US, demand for gasoline crashed to historic lows. Archer Daniels Midland (ADM), the agricultural commodities giant, decided to idle two of the country’s biggest plants producing corn-based ethanol mixed into oil-based fuels to reduce their carbon intensity. ADM’s chief biofuels rival, POET Inc., also shut down several plants. Overall, the bio-fuel accounts for about 10% of every gallon of gas pumped in the US.
A year later, American drivers are back at the gas pump, and ethanol plants are back online. ADM re-opened its plants in early April; POET’s plants re-opened in August 2020 but only hit full production capacity in April. Then, just as ethanol’s road ahead was beginning to look clear, another unanticipated obstacle emerged: the spot price of its key ingredient corn surged to its highest levels i ....

United States , Juan Ricardo Luciano , Nicholas Paulson , Joe Biden , Naomi Blohm , University Of Illinois , Daniels Midland , Total Farm Marketing , Ricardo Luciano , ஒன்றுபட்டது மாநிலங்களில் , ஜுவான் ரிக்கார்டோ லூசியானோ , நிக்கோலஸ் பால்சன் , ஓஹோ பிடென் , நவோமி ப்லோஹ் , பல்கலைக்கழகம் ஆஃப் இல்லினாய்ஸ் , டேனியல்ஸ் மிட்லாண்ட் , மொத்தம் பண்ணை சந்தைப்படுத்தல் , ரிக்கார்டோ லூசியானோ ,

Morning Market Review for April 30, 2021


Losses underpinned by tightening global supplies, lingering drought conditions
Corn down 2-4
Wheat down 2-10 cents
Corn
As April comes to a close, corn futures are slated to end the month up 15% - the largest monthly gain for the contract in over two years. As the May 2021 contract expires, traders are expecting deliveries on the first notice day to be minimal against the backdrop of tightening global supplies and strong cash demand.
Corn prices moved $0.02-$0.03/bushel lower this morning as a sunny weekend forecast encourages planting and germination rates. The market is tightening. Demand is strong and the market is still trying to figure out production in South America and the U.S, said a Melbourne-based grains trader told Reuters overnight. ....

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