# Cautious optimism looms over US ethanol markets into 2024 after near-3-year lows to end the year | S&P Global

> US ethanol producers stayed margin-positive through 2023, averaging 41 cents/gal, but values fell to near three-year lows by year-end. Strong fourth-quarter production and softer gasoline markets drove the decline, while cheap corn and tight inventories supported margins.

- Date: 2024-01-04 · published 2024-01-04T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/32112-cautious-optimism-looms-over-us-ethanol-markets-into-2024-after-near-3-year
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Low ethanol values and cheap corn keep processors' margins positive, supporting steady corn grind demand. Ethanol weakness signals limited upside in corn prices unless policy support arrives.

## Sources

- spglobal.com: https://www.spglobal.com/energy/en/news-research/latest-news/agriculture/010424-cautious-optimism-looms-over-us-ethanol-markets-into-2024-after-near-3-year-lows-to-end-the-year

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