Temporary plant closures in the ethanol and meat packing industries due to the COVID-19 pandemic will add to grain demand challenges faced by farmers.
Here are some notable shutdowns announced this month:
POET will idle production at its bio-processing facilities in Ashton and Coon Rapids, Iowa, and in Chancellor, South Dakota. The company will also delay the start of its new plant in Shelbyville, Indiana. On an annualized basis, the changes at these four plants are expected to reduce corn demand by 110 million bushels.
Cargill closed a U.S. plant in Hazleton, Pennsylvania, that produces meat for retail grocers.
Other major meat companies, including Tyson Foods, Inc. and JBS USA, said on Monday they shut three facilities that produce pork and beef in Iowa and Pennsylvania.
The outlook for corn use in ethanol remains grim. And now we are seeing meat packing affected, which would work back to cool feed demand. FBN believes the USDA will reduce demand and increase carryout in this Thursday’s report.
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