Tuesday, POET announced it will idle production at its bioprocessing facilities in three locations and delay the startup of a new plant. The company says this is directly related to the economic fallout from COVID-19.
With a large increase in corn acres, and declining ethanol demand, the U.S. could be swimming in supplies. That’s why one analyst thinks there's downside price risk with putting corn in the ground this year.
Ethanol prices are in a free fall due to fewer people driving and a recent price war. As some ethanol plants shutter production, facilities may start producing for DDGs to meet the possible upcoming Chinese demand.
Gas prices are falling, but few can take advantage of the low prices as “social distancing” and increasingly stringent COVID-19 prevention restrictions keep people off of the roads and ethanol demand could fall.
The President signed USMCA Wednesday, which completed the ratification process in the U.S. However, even if Canada passes USMCA early next month, experts say it could take months to implement the deal.