CoBank on Dec. 17 issued a report on the year ahead, predicting the 2021 outlook for ethanol is stable but guarded, with considerable growth and margin opportunities favoring ethanol coproducts versus fuel.
The report, published by CoBank&rsquo;s Knowledge Exchange division, examines 10 key factors that will shape agriculture and market sectors that serve rural communities throughout the U.S.
The report notes the ethanol industry experienced a nearly 50 percent reduction in demand last spring due to the COVID-19 pandemic. To date, fuel ethanol in the U.S. has recovered to about 90 percent of pre-COVID levels, CoBank said, equating to average annualized production of 14.6 billion gallons.
Moving into 2021, CoBank predicts that ethanol operating margins could compress below the monthly estimated moving average of 20 cents to 23 cents per gallon due to rising corn prices. The other lingering near-term risk factor relates to the recent uptick in positive COVID-19 cases, the report said, which could reduce demand again if shelter-in-place restrictions return.
A full copy of the report can be downloaded from the CoBank <a href="https://www.cobank.com/knowledge-exchange/general/the-year-ahead-forces-that-will-shape-the-us-rural-economy-in-2021" target="_blank">website</a>.
&nbsp;

2020/12/CoBank2021_16086827699006_largethumb.jpg

2020/12/CoBank2021_16086827699006_thumb.jpg

2020/12/CoBank2021_16086827699006.jpg

CoBank on Dec. 17 issued a report on the year ahead, predicting the 2021 outlook for ethanol is stable but guarded, with considerable growth and margin opportunities favoring ethanol coproducts versus fuel.



CoBank: 2021 outlook for ethanol is stable but guarded

Related Stories

EIA: Ethanol production up 3%, stocks down 1%, exports down 42%

Treasury announces updated SAF tax credit guidance, release of 40BSAF-GREET 2024 model

ADM reports improved Q1 earnings for dry mill ethanol plants

Nebraska celebrates Renewable Fuels Month this May

USDA: Corn use for fuel ethanol production at 492 million tons in February

Upcoming Events

Biodiesel Summit: Sustainable Aviation Fuel & Renewable Diesel

Carbon Capture & Storage Summit

CoBank: 2021 outlook for ethanol is stable but guarded.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}