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Palay farmgate price drops 1.5% in mid-Sept.

THE average farmgate price of palay, or unmilled rice, fell 1.5% week on week to P16.84 per kilogram in the third week of September, with the price increasing 5.7% year on year, according to the Philippine Statistics Authority (PSA).

In its weekly update on palay, rice, and corn prices, the PSA said the average wholesale price of well milled rice fell 0.2% to P38.35 while the retail price fell 0.3% to P42.11.

The average wholesale price of regular milled rice fell 0.3% to P34.72 while the retail price fell 0.4% to P37.73.

The farmgate price of yellow corn grain fell 1.1% week on week to P11.88.

The average wholesale price of yellow corn grain rose 0.5% to P20.90 while the retail price rose 0.5% to P24.94.

The farmgate price of white corn grain rose 0.5% week on week to P13.24.

The average wholesale price of white corn grain was flat at P15.75 while the retail price remained at P27.80 for a third week. — Revin Mikhael D. Ochave

Getting in shape

A CORSET that claims to burn fat as you wear it? According to a beauty queen, it’s possible.

During Singapore’s Digital Fashion week late last month, Miss World Philippines 2018 Katarina Rodriguez, along with homegrown shapewear brand Adam & Eve, presented their corsets and shapers via Facebook Live. The presentation also made a case for positive self-image.

While before the 20th century, women would squeeze themselves into corsets, a more democratic world simply uses brassieres and girdles to achieve women’s desired shape. Adam & Eve’s items claim to be breathable and flexible, aware that women now are able and want to move (for example, some of their shapers are actually used for working out).

“There are already a number of shapewear products right now, but Adam & Eve is the first ever in the country that really took the time to research the most effective technology to burn fats and contour [the body], that they can incorporate into their personal style,” said Iya Miranda, Brand Manager for Adam & Eve. The brand was founded last year by Elaine Huang.

The secret is in the fabric. The shapewear uses Carvico Revolutional Slim fabric, which is infused with caffeine, fatty acids, retinol/Vitamin A, and aloe. It is claimed that the fabric is able to burn fat and help the user lose weight — provided that they wear it next to their skin for no less than eight hours in a day. These are the instructions both on the Philippine website, adam-eve.ph, and that of the Italian manufacturer of the fabric, carvico.com. The brand offers a series of body shapers, waist cinchers, thigh slimmers, fitness shapers, and lingerie, with prices ranging from P185 for the panties, and up to P7,750 for the Bodysuit Shaper.

“Our core as a brand is advocating self-love,” said Ms. Miranda. “It might be cliche, but you do start feeling better with your self-image when you truly are comfortable with your body.”

Before buying one though, Ms. Miranda says, “It’s very important that we assess the clothing style of the wearer, and [their] size and measurements, so that we will be able to offer different types of shapewear.”

For example, a woman who is constantly in long-sleeved tops and trousers would benefit from the full bodysuit shaper, with sleeves, so she can shape her arms underneath her clothes. For different body types, different garments are needed: a pear-shaped woman (narrow torso and wide hips) would benefit from purchasing an item that would slim down her legs.

Meanwhile, beauty queen Ms. Rodriguez said that she wished she had known about the brand two years ago, because she had to look for a waist trainer herself from another brand, which she wore under her gowns. Despite winning numerous contests (aside from Miss World Philippines, Ms. Rodriguez also had a stint as Miss Intercontinental Philippines, and placed third in the second season of the TV show Asia’s Next Top Model), Ms. Rodriguez said that her positive self-image isn’t turned on 24/7. “There are many days even, especially when it’s that time of the month, and you just want to eat everything.

“Everybody should try and attain a positive outlook for themselves, not just physically, but how you feel about yourself,” she said.

Visit adam-eve.ph to view the products. — JLG

Phoenix emerges as third-largest oil player

PHOENIX Petroleum Philippines, Inc. cornered more fuel demand in the country, placing itself now among the three biggest Philippine oil industry players.

The Dennis A. Uy-led independent oil company came in third among all domestic fuel retailers, replacing the spot traditionally held by Chevron Philippines, Inc. for years, according to the latest Department of Energy (DoE) report.

Phoenix climbed one notch from the fourth place last year as it captured 6.86% of the demand in the petroleum market.

Ramon S. Ang-led Petron Corp. remains the largest oil company in the country with a 24.88% market share, while Pilipinas Shell Petroleum Corp. comes second with an 18.25% share.

Together, the top three firms serviced 49.25% of the fuel market, while the rest were supplied by independent retailers and direct importers.

Chevron slid to fifth place with a 6.13% share, just behind Unioil Petroleum Philippines, Inc., which controlled 6.48% of the market.

Phoenix was able to cut its net loss in the second quarter to P5 million from P386 million previously. It claimed the company was on its way to profitability in the succeeding quarters.

“We are confident and hopeful that the worst is behind us,” Phoenix President Henry Albert R. Fadullon said in a statement in August.

The country’s total petroleum demand dropped by 22.8% to 10.794 billion liters in the six months to June, “attributed to reduced economic activity due to lockdown and travel restrictions because of the pandemic,” the department’s Oil Industry Management Bureau said.

About a quarter of the fuel products in the market are consumed in Metro Manila, followed by north and south Luzon regions. Mindanao accounted for 15.23% of the demand, while the Visayas took up 14.18%.

Meanwhile, the petroleum import volume in the first six months of 2020 fell by 35.4% to 5.954 billion liters. Imported products comprised more than half, or 55.2%, of the country’s total fuel demand. — Adam J. Ang

Mitsubishi’s GenSan dealership turns 50

LAST SEPT. 15, Mindanao Integrated Commercial Enterprises, Inc. (MICEI), Mitsubishi Motors Philippines Corp.’s (MMPC) authorized dealership in General Santos City, South Cotobato, turned 50. In a release, MMPC said that the dealership’s “longevity in the highly competitive automotive industry reflects the resiliency of the organization and its progressive business approach that allows them to quickly adapt to the ever-evolving demand of the market.”

While it is a half-century old, the facility remains up to date, and MICEI is actually “exploring the use of solar panels” to power the premises.

In his message, MMPC President and CEO Mutsuhiro Oshikiri greeted MICEI, saying, “MMPC congratulates Mindanao Integrated Commercial Enterprises for the commendable feat that they achieved. We are very thankful to be partners with such a strong organization. To reach 50 years of operation and still sustain the same level of enthusiasm to service the people of General Santos City is truly inspiring. We look forward to more years of fruitful partnership with MICEI.”

Argentina first nation to approve drought-resistant GMO wheat, farm industry balks

BUENOS AIRES — Argentina on Friday formally became the first country in the world to approve the use of drought-resistant genetically modified (GMO) wheat, prompting fierce criticism by the country’s massive export agriculture industry.

Bioceres’ BIOX.BA HB4 wheat is resistant to drought and tolerates the herbicide glufosinate sodium, a combination the company says can help boost yields on dry years. But the government said the product cannot be sold before Brazil, Argentina’s biggest wheat buyer, approves its importation.

Last year, 45% of the 11.3 million tons of wheat exported by Argentina went to neighboring Brazil, which has not commented on the prospects of it approving the purchase of HB4 wheat.

Many farm groups in Argentina objected to the government’s approval of the product, over concerns it could prove a stigma for exporters.

“Not only are wheat and flour exports put at risk, but also pellets, starch, gluten, baked goods, noodles and all the products (that require additional processing),” said a statement signed by regional farmers’ associations, traders, and the influential Chamber of Cereal Exporters (CEC).

No other countries have yet approved the importation of GMO wheat, leaving Argentine farmers with little incentive to plant it. Environmental groups have warned that not enough is yet known about GMO crops, treated with weed killers like glufosinate sodium, for them to be safely consumed by humans.

A green light from Brazil would not trigger Bioceres to immediately commercially launch the new technology before getting approval from other markets, CEO Federico Trucco told Reuters on Thursday.

Associations linked to the farm supply chain in Argentina warned in the statement that national and international companies are already requesting assurances that the wheat they purchase does not have genetic modifications — in addition to its derived flour.

“The damage that would occur to the Argentine wheat market would be irreparable and irreversible,” the group said, adding that the government did not consult them before approving the variety.

The HB4 wheat variety was developed by Trigall Genetics, a joint venture between Bioceres BIOX.A and France’s Florimond Desprez. —  Reuters

Memorable Ursula Andress Dr. No bikini could fetch $500,000 at auction

LOS ANGELES — James Bond fans may have to wait until next year for the next 007 adventure movie, but those with deep pockets next month can get their hands on some of the most famous items from the previous movies.

The ivory colored bikini worn by Ursula Andress in Dr. No — the first Bond movie — is up for auction in Los Angeles with an estimated price of up to $500,000, auctioneers Profiles in History said on Wednesday.

Andress, who played beachcomber Honey Ryder in the 1962 film and was the first Bond girl, was pictured emerging dripping from the ocean in the bikini, holding a seashell and with a scabbard belted to her hips.

“It is regarded as the most famous bikini in the world,” said Brian Chanes, head of acquisitions at Profiles in History.

“It’s one of the most memorable scenes in the entire Bond franchise,” he said. “It helped bikinis become more mainstream and it started the whole Bond girl phenomenon.”

Andress herself first sold the bikini at a London auction in 2001.

Other items include Roger Moore’s monogrammed pajama ensemble from Live and Let Die (estimated at $10,000 – $15,000); the gray signature jacket worn by villain Ernst Blofeld in Diamonds are Forever ($20,000 – $30,0000); and Jane Seymour’s emerald psychic cape and headdress from ($60,000 – $80,000)

“Things from the Bond franchise are relatively rare especially the further you go back in time,” said Mr. Chanes, saying he expected bidders to come from around the world. “With Bond especially it’s very much an international crowd.”

The auction will take place online and in Los Angeles on Nov 12-13. The next Bond movie, No Time to Die, was last week pushed back from November to an April release in movie theaters. — Reuters

Fourth telco hopes, company partnership boost NOW stock

By Jobo E. Hernandez, Researcher

THE MARKET saw renewed interest in NOW Corp. in hopes of the company being named the country’s fourth telco player as well as its partnership with Vietnam’s Viettel Business Solutions Corp. to offer information and communications technology (ICT) products and services in the Philippines.

A total of 422.608 million NOW shares worth P1.997-billion were traded from Oct. 5 to 9, making it the fourth most actively traded stock last week, data from the Philippine Stock Exchange showed.

NOW finished at P4.77 apiece last Friday, up 28.2% from its P3.72 close on Oct. 2. For the year, shares in the company have gone up by 90.8%.

Darren T. Pangan, trader at Timson Securities, Inc., said NOW’s stock price movement and volume activity had been heavily influenced by reports in late September that the National Telecommunications Commission (NTC) extended a company affliliate’s provisional authority to install, operate, and maintain a nationwide mobile telecommunications system.

“Since then, the stock experienced volatility as it ascended to its current price,” he said in a Viber message.

“[The partnership with Viettel] may have boosted investor sentiment towards the stock as well,” he added.

In an e-mail, Regina Capital Development Corp. Equity Analyst Anna Corenne M. Agravio noted telecommunications firms being among the most actively traded last week.

For NOW, this could have been driven by market speculation ahead of the final pricing of Converge ICT Solutions, Inc., she said, referring to another telco firm set to debut in the local bourse this month.

In a disclosure to the stock exchange on Oct. 2, NOW said it had signed a memorandum of agreement with Viettel “to develop market opportunities in the Philippines,” adding the Vietnam-based technology firm wants to export ICT products and services to the Philippines.

Among Viettel’s notable ICT applications include its Study E-learning Social Network, and its Smart Cities project. It also has a citation for being the best mobile payment in Asia, according to NOW.

The two firms will be exploring opportunities in digital transformation consulting services, artificial intelligence, data analytics, and cybersecurity.

Meanwhile, NOW affiliate NOW Telecom Co., Inc. said the NTC had “extended” its provisional authority to install, operate, and maintain a nationwide mobile telecommunications system.

The extension is not specific to 3G mobile communications technology but can extend to 4G and 5G technologies, the company said.

In the NTC order, the extension comes with conditions, which include the infusion of additional capital of at least P1.9 billion based on the company’s first two years’ capital expenditure of P6.3 billion as submitted and approved by the Securities and Exchange Commission

“Market volatility surrounding the telcos started to simmer down towards the tail end of [last] week. Because of this, NOW’s share price may start to normalize coming into [this] week,” Regina Capital’s Ms. Agravio said.

“The market’s prospects for NOW Corp. are largely dependent on whether or not it will officially be the country’s fourth telco,” she added.

Ms. Agravio placed the stock’s support and resistance at P4.10 and P5.00, respectively.

Timson Securities’ Mr. Pangan pegged an “immediate support” of P4.00 and “nearest resistance” at P5.00.

“We’ll have to observe in the coming days if the stock moves in a sideways direction between these support and resistance areas, or if it breaks out of P5.00, which makes P6.39 the next resistance level,” he said.

New Caltex Delo oil promises shorter downtime for truck fleets

THE NEWLY LAUNCHED Delo 400 SLK SAE 15W-40 is said to boost the performance of various engine designs, allowing one oil for vehicles from different OEMs with or without DPF after-treatment devices, thus reducing inventory costs for vehicle operators.

Critical and in-demand commercial vehicles, such as shipping and logistics trucks, buses, waste management trucks and off-road vehicles can benefit from an engine performance bump via the Delo 400 SLK. Marketed by Chevron Philippines, Inc. (CPI), the engine oil addresses the “needs of diesel engines operating under on- and off-road conditions.” It promises improved oxidation stability allowing engines to have extended oil life, enabling shorter downtime even for vehicles operating under stop-and-go and severe operating conditions.

In a field trial, 30 trucks reached an extended drain interval of 60,000 km to 80,000 km.

The Delo 400 SLK’s anti-wear system also offers robust wear and corrosion protection of engine components. These all means improved equipment reliability, reduced vehicle downtime and less operational costs. The new Delo 400 SLK is available in drum and 18-liter pail packaging. For more information, e-mail PHLubesweb@chevron.com or talk to a sales representative.

Yields on government debt end flat on inflation report

YIELDS ON government securities (GS) closed flat last week following data showing a benign September inflation print.

GS yields inched down by an average of one basis point (bp) on a week-on-week basis, based on the PHP Bloomberg Valuation Service Reference Rates as of Oct. 9 published on the Philippine Dealing System’s website.

This resulted in mixed yields across-the-board week on week at the end of trading on Friday.

The rates of the 91- and 182-day Treasury bills (T-bills) increased by 4.2 bps and 1 bp to 1.177% and 1.589%, respectively, while the yield on the 364-day T-bills decreased by 2.6 bps to 1.827%.

Yields on the two-, three-, four-, and five-year Treasury bonds (T-bonds) declined by 3.6 bps (2.042%), 3.5 bps (2.272%), 1.8 bps (2.476%), and 0.3 bps (2.644%). Meanwhile, the seven-year bond ended flat at 2.812%.

At the long end of the curve, the 10-year T-bonds rose by 8 bps to 2.912%, while 20- and 25-year debt fell by 9.4 bps (3.793%) and 3.2 bps (3.842%), respectively.

“The two-way interest seen at the start of [last] week turned to profit-taking bias as the market looks for a clearer catalyst in the short-term. Bids were defensive after the September inflation print, which came just in line with expectations, failed to drive buying interest,” First Metro Asset Management, Inc. (FAMI) said in an e-mail.

“Inflation printed in line with market expectations and was largely a non-event,” ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said in a separate e-mail.

Inflation eased for the second straight month in September to its slowest level in four months on the back of moderating prices in the heavily weighted food and nonalcoholic beverages, the Philippine Statistics Authority (PSA) reported on Tuesday.

Preliminary PSA data showed headline inflation stood at 2.3% in September, the slowest since May’s 2.1%. The result was also down from the 2.4% pace in August, but higher than 0.9% print in September 2019.

The latest reading, which matched the median estimate of 2.3% in a BusinessWorld poll, fell within the Bangko Sentral ng Pilipinas’ (BSP) 1.8%-2.6% forecast range for September.

Inflation averaged at 2.5% in the first nine months. This was higher than the BSP’s revised forecast of 2.3% for 2020 but within its 2-4% target for the year.

Investors flocked the T-bills on offer on Monday, pushing yields lower, as they chose to park their excess cash in short-termed papers following expectations of a slower September inflation print.

This prompted the Bureau of the Treasury (BTr) to borrow P22 billion via the T-bills, higher than the original P20-billion program, as bids surged nearly fivefold to P98.858 billion.

On Tuesday, the BTr made a full P30-billion award of reissued three-year papers with a remaining life of two years and 11 months as its rate fell after the release of September inflation data.

The Treasury also opened its tap facility to borrow P15 billion more from the three-year as bids reached P114.488 billion.

For this week, a bond trader said the yield curve might continue to move sideways amid heightening political uncertainty in the United States due to the upcoming November elections as well as likely tepid US retail sales and consumer confidence data.

“With lack of near-term catalysts and upcoming [five-year bond] auction in the third week of October, we expect the market to continue trading light with more upward bias in the belly to the long end of the curve,” FAMI added.

“With the jumbo [five-year] RTB (retail Treasury bonds) trading close to par once more, we could see some sellers lightening positions prior to the auction,” ATRAM Trust’s Mr. Liboro said.

“However, barring an increase in probability of additional cuts to the reserve requirement rate, sentiment is likely to remain neutral over the short-term,” he added. — M.A.P. Soliman

Style (10/12/20)

New line of men’s accessories by Ferragamo

TORNABUONI 1927, a milestone place and date for Ferragamo come together to form the name of a new line of men’s accessories. Palazzo Spini Feroni, the Florentine heart of this fashion house, stands at the start of via Tornabuoni and 1927 marks the year of Salvatore Ferragamo’s return to Italy after success in Hollywood. The new line embodies Ferragamo’s creative craft and artisanal heritage, with an attention to state-of-the-art production technology. Tornabuoni 1927 includes an assortment of large and small leather goods designed mainly for leisure time, for those stylish moments outside the office. It also embraces youthful elements and more affordable articles. Among the Large Leather Goods are a selection of soft, light bags in deerskin which include a sailing bag and a tote, available in black and white, and a clutch. They all feature the embossed Tornabuoni 1927 logo as their distinguishing mark. It also has an assortment of accessories in nylon with a 3D rubber logo application including a backpack with shoulder straps in a padded technical fabric, and shopping totes, of which there is a red version with black lettering and one in navy blue. Finally, again in nylon, but with the logo printed on a small leather label: a backpack, waist bag, hands-free bag in black and navy and a small shoulder bag. Standing out among the Small Leather Goods, in deerskin, are a wallet in black or white, and a credit card holder in the same palette. In the Philippines, Salvatore Ferragamo is exclusively distributed by Stores Specialists, Inc., and has stores located at Greenbelt 4, Rustan’s Shangri-La, Rustan’s Makati and Solaire Resort & Casino. Visit www.ssilife.com.ph or follow @ssilifeph on Instagram for more information.

Gucci releases Towards the Sun collection

COLOR is the key in Gucci’s Towards the Sun collection. The new range interprets the House aesthetic in a manner that evokes the idea of light and warmth, with a range of pastels reflecting a mood of joy and optimism. The collection has the benefit of being both formal and informal, offering highly versatile designs suited to many occasions. The line includes bags, shoes, ready-to-wear, accessories and small leather goods, and features Gucci House motifs and hardware. The women’s bags in the Towards the Sun collection are from the GG Marmont 2.0, Gucci Zumi and Gucci 1955 Horsebit lines and feature distinctive Gucci hardware and decoration, often in a new shiny silver finish. The color palette ranges from mono color baby pink, light blue, pastel yellow and water green, to a multicolor version which blends them all together. Exotics complete the offer: crocodile for the small shoulder bag, and python for the same style and small camera case. The exotics come in all the pastel colors. There is also a group of GG Marmont 2.0 pieces in white diagonal quilted leather with contrasting blue piping.  The collection also sees the addition of a new idiosyncratic bucket bag. The distinctive construction of this piece features a semi-rigid circular base and a leather top with a drawstring closure, and the style is enriched by a small version of the gold metal Horsebit detail. The new bucket bag is offered here in a small size in Original GG canvas with either brown leather trim or white leather trim and, thanks to the adjustable handles, it can be used in two ways: carried by hand, or, after turning the two handles into a single, longer shoulder strap, on one shoulder. It has a microfiber lining in a natural color. Gucci breathes new life into a print from the House archive: the bold red/yellow/green/blue Baiadera stripe. Bags in this pattern in linen have an external oval red leather tag displaying the Gucci script logo in gold. In the Philippines, Gucci is exclusively distributed by Stores Specialists, Inc., with stores located at Greenbelt 4 and Shangri-La Plaza East Wing. Visit www.ssilife.com.ph or follow @ssilifeph on Instagram for more information.

UNIQLO’s latest Sport Utility Wear collection

JAPANESE global apparel retailer UNIQLO has launched its latest Sport Utility Wear collection featuring comfortable and functional items for daily needs. For workouts and an active lifestyle at home or outdoors, all while staying comfortable and fresh, UNIQLO has the Wireless Bra (Active), Ultra Stretch Active Apparel and DRY-EX Shirts. They are made with DRY technology that quickly dries sweat; Ultra Stretch material that allows maximum movement in all directions; and DRY-EX that feature a highly breathable woven surface and mesh hole to retain heat and dry moisture. Fight off sweat while doing errands or household chores while wearing the AIRism Short Sleeve Long T-Shirt, Cropped Jogger Pants, or DRY-EX Short Sleeve Polo Shirt and Smart Ankle Pants. AIRism apparel is made with smooth AIRism material that is cool to the touch and has comfort conditioning technology that wicks away moisture for comfort and breathability. Meanwhile, there is the Pocketable UV Protection Parka which blocks 90% of ultraviolet rays (for approximately 10 hours). It is compact and pocketable, perfect for those who are on-the-go. Stay dry and fresh with the DRY-EX UV Protection hoodie made of material that quickly dries sweat and moisture. It also has anti-microbial and anti-odor properties. Both have zippered pockets to keep coins, cards and other essential items secured even while moving. Visit and shop the collection at www.uniqlo.com/ph or at UNIQLO stores nationwide.

Showcases present the ‘new normal’ home essentials from Shangri-La Plaza

THE “NEW NORMAL” has turned homes into multifunctional spaces — offices, classrooms, mini gyms and entertainment hubs. To help spruce up spaces to accommodate current household needs, Shangri-La Plaza brought together seven personalities from different fields and expertise to inspire mall guests to make “Everyday Wonderful” with a series of home vignettes which can be viewed until Oct. 25. Events planner and owner of Events Embassy Cathy Ebuen tackles workspaces, creating a warm and engaging room for working and learning. Since so many people have taken up cooking and baking during quarantine, pastry chef, cookie connoisseur, and business owner Bryan Cruz of Pica Pica Manila shares his idea on what an efficient kitchen design looks like. Meanwhile, Philippine Educational Theater Association (PETA) artist-teacher, award-winning choreographer, and actor Carlon Matobato shares the secrets of effectively arranging and displaying indoor plants in a living room with his vignette. Entrepreneur Amanda Peliño puts together a space that is meant for taking a break from it all. Working from home doesn’t mean having to stop working out so Ella Fortun, a full-time international luxury brand manager and an instructor at Ride Revolution, tackles the home gym. Clarisse Valdecantos, a young mom influencer, has come up with a space for her four-year-old girl that allows for future adjustments without sacrificing a child’s zest for exploration and creative play. Micah Pinto, executive director of non-government organization Para Sa Sining, puts together a cozy and homey space for Zoom parties and protocol-approved small, intimate gatherings. The vignettes can be seen at Shangri-La Plaza’s Grand Atrium, East Atrium, and Level 1 Main Wing until Oct. 25. The designers created their spaces with items from brands like 5th Ave. Electronic City. Ariston, Art Circle, Artologist, Ashley, Blims Fine Furniture, BoConcept, Chris Sports, Commune, EGO Italiano, Furniture Republic, GE Monogram, Hacker, La Sedia, La Z Boy, Modernbrands, National Book Store, Ogalala, Restoration, Rustan’s Department Store, Toys R’ Us, True Value, Wellness Concepts, Yankee Candle and Yugen. Shang is also hosting online Everyday Giveaways at www.facebook.com/shangrilaplazaofficial. Check out the Everyday Shopping videos and how to get a chance to win items to help turn those home improvement ideas into reality.

Keeping it clean: US ethanol producers invest in sanitizer for long haul

NEW YORK — Red River Biorefinery in Grand Forks, North Dakota, came online in April, arguably the worst time for an ethanol facility to begin operating as the coronavirus pandemic sank fuel demand.

Instead of shutting like many ethanol facilities, the company switched focus from producing fuel ethanol to making high-grade alcohol for hand sanitizer, where demand surged during the pandemic as Americans scrambled to protect themselves against the coronavirus.

Red River and several other companies now view the hand sanitizer market as more than a temporary salve for weak fuel demand, making permanent investments in production of high-grade alcohol that meets standards for producing sanitizer.

In recent months Pacific Ethanol, Green Plains and Highwater Ethanol have said they will boost capacity for high-grade alcohol.

“Our intent when we first went live was to be purely in the fuel market,” said Red River President Keshav Rajpal. “There’s been a huge shift in supply and demand instantaneously. When that happens, in our case margins compared to fuel ethanol are much higher in this space.”

Globally the hand sanitizer market was valued at $2.7 billion in 2019, with North America accounting for a third of the market’s revenue share, according to Grand View Research, a consultancy.

The flurry of announcements indicate some producers see more profitability in hand hygiene because of the pandemic than in transportation fuels. Corn-based fuel ethanol demand tends to track closely to gasoline consumption, as US law requires it to be blended into the fuel.

As of January, US fuel ethanol production capacity totaled 17.4 billion gallons per year, EIA said, up from 2019’s 16.9 billion gallons per year.

Fuel ethanol production nationwide has rebounded from the spring, hitting 923,000 barrels per day from 537,000 bpd in April, according to the Energy Information Administration. That was still 4% lower than the same time last year. — Reuters

Philippines among countries with highest disaster risk

Philippines among countries with highest disaster risk

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