As Coronavirus Roils Energy Markets, RFA Calls for Immediate Action from White House
With the coronavirus affecting so many Americans and causing so many questions and concerns about the national economy, Renewable Fuels Association President and CEO Geoff Cooper today released a statement saying they are carefully watching the government’s response to turmoil in the energy markets.
“Our industry is being adversely affected not only by the economic constraints caused by the coronavirus, but also by the oil price war, ongoing trade disputes and EPA’s small refinery waivers.
“While the policy response to turbulence in the energy markets has so far focused largely on supporting crude oil producers, we urge the Administration to recognize that biofuel and agricultural commodity markets are suffering as well. Ethanol futures prices hit a record low in recent days, as the coronavirus is expected to negatively impact domestic and international fuel demand in the near term. With many ethanol plants on the verge of shutting down, we implore the Trump administration to take action that equitably supports all liquid fuel industries-including ethanol producers-during this time of unprecedented market uncertainty and unrest.
Corn Demand Over the Near Term
The sharp price drops across equity and commodity markets over recent trading sessions indicate investors foresee a drop off in economic activity over the near term. Only the duration and severity of the economic contraction remain uncertain. A severe contraction extending into the summer does not bode well for agricultural commodity prices. Corn demand will suffer over the short run with corn used for ethanol setting up for particular weakness.
UK Education Events Cancelled
The KATS Planter and Drone Workshop for March 26 has been cancelled, as well as the Fragipan Workshop that was scheduled to take place on the Peery farm. We will provide make up dates if they are rescheduled.