Yesterday, the CBoT corn future was at its lowest level in three years. The courses recover a little from this hour; however, profits are limited by a radically reduced demand for corn-based ethanol.
In the corona crisis, almost all people worldwide remain at home to limit the spread of the virus. There is hardly any traffic on the streets. In the United States, ethanol production decreased by 102,000 barrels per day (bpd) to 570,000 bpd. The petrol additive stocks are at a record high.
While ethanol production is falling drastically, US farmers plan to expand their maize cultivation this spring. The two together will lead to a long-lasting oversupply of corn, because more than 1/3 of the US corn production has been processed into ethanol.
Lobbyists and governments in five states are pushing President Donald Trump to require refineries to add a certain amount of ethanol to gasoline. 
Source
Hansa Terminhandel GmbH
