CoBank says ethanol sector back at 90% of pre-COVID demand

In Colorado, the U.S. economy has been improving since late spring, but progress has slowed measurably, and the economy remains fragile. Another broad fiscal relief package appears to be off the table at least in the near-term, which means the currently sluggish economy will likely end the year in a fizzle.

According to a new Quarterly report from CoBank’s Knowledge Exchange, rural America is experiencing a dichotomy of improving industry fundamentals and a surge of COVID cases. Rural communities are now the source of a disproportionate number of new cases, just as many Americans are beginning to spend much more time indoors.

The U.S. ethanol sector continued to recover during the third quarter to a new baseline level equaling roughly 90% of pre-COVID demand. Recent developments surrounding E15, small refinery exemptions, federal relief and another delay on Brazilian import duties appear to be incremental positives for the ethanol complex.