COVID-19 restrictions could threaten U.S. ethanol recovery

In Colorado, Reuters reports that U.S. ethanol production has been unusually light ever since March, when the coronavirus pandemic sharply curbed global fuel consumption and that the resurgence of the virus and increasing restrictions, especially just before the holidays, threaten to derail a comeback in fuel demand.

“Ethanol output in recent weeks has very slowly chipped away at its deficit versus prior years. In fact, the latest three weeks were the most productive for U.S. ethanol makers since March. Seasonal trends are part of the reason why output has recently risen, but comparisons with past years suggest that output has continued to improve from its pandemic slump, though the pace is slow.”