CORONAVIRUS PANDEMIC DRIVES MAIZE PRICES DOWN...
April 29, 2020 Coronavirus Pandemic Drives Maize Prices down... The global spread of the pandemic that started off in China has caused maize prices to drop, over the past few weeks. Maize – a Raw Material Linked to Petrol Prices... One of the main causes for the maize price drop in the past weeks has been the plummeting petrol prices. In recent years, nearly 40 percent of the U.S. maize production has been used in the ethanol industry. On the other hand, ethanol prices (closely linked to the petrol ones) have dropped almost by half since mid-February. The petrol market faces a double hit to supply and demand. Fuel demand is dropping as a result of the global economic and industrial slow-down triggered by the large number of people in lock-in. World petrol supply has otherwise recorded a net increase, due to disagreements among the main producing countries. Consequently, petrol prices have fallen. The margins and market outlets of the ethanol industry have therefore shru...