FAPRI predicts increased demand for E15, higher ethanol exports

The University of Missouri’s Food and Agricultural Policy Research Institute in mid-March released its 2021 U.S. Agricultural Market Outlook, predicting an increase in demand for midlevel ethanol blends, a recovery in ethanol net returns, and increased exports over the next decade.

The report notes that the COVID-19 pandemic upended agricultural markets over the past year. Looking ahead, FAPRI said the outlook for agriculture “is uncertain, but certainly more optimistic than it was a few months ago.”

For ethanol, FAPRI predicts some recovery in motor fuel demand this year, but does not expect gasoline use to reach pre-pandemic levels through the 10-year projection period to 2030. The report, however, predicts that an expansion in midlevel ethanol blends, such as E15, will lead to slow but steady growth in domestic ethanol use.