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Ethanol demand recovering, again

An ag economist says ethanol demand is recovering following losses from the COVID-19 Delta variant and Hurricane Ida.

Ben Brown with the University of Missouri’s Food and Agricultural Policy Research Institute tells Brownfield ethanol production fell as stocks did, preventing large losses.

“Our ethanol demand picture was slightly decreasing, but again, it wasn’t any major concern,” he said. “Had we had stocks increasing at the same time we had production falling, that would have been a concern.”

Brown said he thinks USDA’s recent estimate of 5.2 billion bushels of new crop corn to be used for ethanol production in the next year is just about right…

“But we’re going to have to recover some driving as well, [and] we’re going to have to maintain our robust ethanol export program that we’ve built the last couple of years,” he said.

Brown said fuel consumption indicates drivers are getting back on the road and ethanol production will increase as new crop corn becomes available.

Ben Brown Interview

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