Pesticides and seeds producer Corteva Inc. on Thursday raised concerns about global corn demand in the latter half of the year, adding to fears that prices could take a further hit from a slump in demand for grain-based ethanol, reports Reuters.
Corn prices have fallen sharply tracking a decline in demand for petroleum products, as travel restrictions due to the COVID-19 pandemic hit demand for ethanol. Most of the corn produced in the United States is used to make ethanol fuel.
“Our assumptions right now is that we could see a 5 to 7 million acre decline in corn,” Chief Executive Officer James Collins told Reuters.
