Since the worst drought in 56 years hit much of the corn production in the United States, there was an increase in the prices of grain which created a climate of uncertainty regarding the ethanol market, which in the country is mostly corn -based .
According to the Renewables Fuels Association at least seven ethanol plants in the country were closed. From units that are still working, many are operating at only 80% capacity.
Estimates of the Research Institute for Food and Agriculture Policy at the University of Missouri indicate that the biofuel production in the country will fall 10% in 2013, reaching 12.4 billion gallons, while exports will be reduced to 505 million gallons icompared to 1.1 billion this year.
According to the president of the RFA (Renewables Fuels Association) Bob Dinneen, this year the U.S. has reduced its production of ethanol by about 15% “The market does anticipate a fair amount of rationing. It is likely there will be less ethanol production, fewer exports and livestock may well look for alternative sources of feed. In the end, the market will sort it out. “he said.