COVID
The United States Department of Agriculture (USDA) closed a wing of it’s Washington headquarters over the weekend because an employee tested positive for COVID-19.
From the normal aggressors such as Mother Nature, weeds and insects, to all-new challenges from COVID-19 fallout, 2020 is shaping up to be a lower-than-forecasted profit year for the golden grain.
While oil proved it’s possible commodities can trade blow $0, it may not be probable. Analysts say the driving factor is demand.
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.
Sugar demand is dropping for the first time in four decades. John Phipps explains why, and talks about the implications, in John’s World.
The story for corn doesn’t seem to be improving. Ethanol demand continues to be weak, and improved planting progress shocked the market. T
While muscle memory will take over for many planting tasks, you have a new layer of uncertainty and potential danger: the coronavirus (COVID-19).
USDA says farmers intend to plant 97 million acres of corn in 2020. As COVID-19 acts as an anchor on the markets, and the ethanol crisis continues to unfold, some analysts say 97 million acres could be a stretch.
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.