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S&P Global reports that US ethanol demand is strong entering 2022 as the industry recovers from pandemic lows. Ethanol cash margins hit a seven-year high of $1.7531/gal on Nov.
24 and averaged over $1/gal in Q4. Poor railroad performance has left railcars sitting at plants and kept some output below maximum.
Rail bottlenecks cap ethanol output, which limits corn grind and the DDGS supply that feed buyers rely on. That restrains corn demand and tightens or loosens DDGS availability depending on how long the rail problems last.
spglobal.comDec 20, 2021After 359 past bearish logistics events, CORN moved a median -0.3% over 5 sessions (44% higher; middle half -1.5% to +1.5%), and -0.5% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
