# US biofuel policy increases ethanol margins; DDGS market sees limited impact

> US biofuel policy updates have raised ethanol margins but have not supported the DDGS market, according to sources. The EPA proposal sets 2026 and 2027 volumes at 24.02 and 24.46 billion gallons, up from 22.33 billion in 2025, with much of the increase in biomass-based diesel. Market participants remain cautious that higher ethanol output will add pressure to DDGS values already weighed by weak feed demand and limited exports.

- Date: 2025-06-20 · published 2025-06-20T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/24201-us-biofuel-policy-increases-ethanol-margins-ddgs-market-sees-limited-impact
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Higher ethanol output means more DDGS supply into a market with soft feed demand, which points to weaker DDGS prices for feed buyers. Stronger ethanol margins support corn demand from crushers, but the co-product effect dominates for DDGS.

## Read by commodity

- CORN: bullish ▲
- DDGS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2022-06-30 | [EIA: Ethanol and Biomass-based Diesel Prices - Fuels Market News](https://feedsoft.ai/events/15389-eia-ethanol-and-biomass-based-diesel-prices-fuels-market-news.md) | +1.0% | -16.7% |
| CORN | 2017-12-03 | [RFS ruling stays course on ethanol but biomass diesel will see no increase](https://feedsoft.ai/events/67354-rfs-ruling-stays-course-on-ethanol-but-biomass-diesel-will-see-no-increase.md) | +0.1% | +5.5% |
| CORN | 2024-09-04 | [Ethanol push turns India into corn importer, shaking up global market](https://feedsoft.ai/events/28323-ethanol-push-turns-india-into-corn-importer-shaking-up-global-market.md) | -1.4% | +4.9% |
| CORN | 2017-06-19 | [US corn ethanol producers to tap into overseas demand - Governors' Biofuels Coalition](https://feedsoft.ai/events/70503-us-corn-ethanol-producers-to-tap-into-overseas-demand-governors-biofuels.md) | -5.4% | -1.7% |
| CORN | 2019-10-01 | [Ethanol movements impact distiller grains \| Western Livestock Journal](https://feedsoft.ai/events/56574-ethanol-movements-impact-distiller-grains-western-livestock-journal.md) | +1.5% | -0.6% |

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/062025-us-biofuel-policy-increases-ethanol-margins-ddgs-market-sees-limited-impact

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.