The International Energy Agency (IEA) confirmed that US ethanol production has plunged to a two-year low. Industry representatives ask the US Environmental Protection Agency (EPA) to waive the standard, which mandates that 13.2 billion gallons of ethanol be produced this year. The US have experienced the worst drought in 55 years, which is severely affecting corn growing regions. The drought, together with current low level of US corn stocks, has raised prices of fodder for livestock. Around 40% of the US corn harvest is processed in ethanol distilleries, and one third is used as fodder.
Ethanol prices have fallen due to a weak economy and automobile efficiency improvements. The high corn prices, in combination with falling ethanol prices have slashed ethanol producers profit margins. Some ethanol plants have reduced or temporarily halted production
-tk-