Driving the corn market right now is word that China has made its largest U.S. ethanol purchase ever.
Two-hundred million gallons for the marketing year.
It is slightly more than its highest purchase set in 2016. China is usually not a big customer of ethanol but there is an uptick in demand, and China’s domestic corn crop was smaller than expected.
Reuters says that the country bought the biofuel from Archer Daniels Midland.
ADM says that purchase supports the fact that ethanol producers could see recovery in 2021.
ADM reported stronger than expected fourth quarter earnings yesterday and says that it hopes to boost ethanol capacity in the first half of the year. That could mean restarting idled plants.
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