# Commodities 2022: Logistical challenges to weigh on US ethanol

> 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.

- Date: 2021-12-20 · published 2021-12-20T12:00:00.000Z
- Category: logistics · region US · magnitude medium
- Page: https://feedsoft.ai/events/43603-commodities-2022-logistical-challenges-to-weigh-on-us-ethanol
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

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.

## Read by commodity

- CORN: bearish ▼
- DDGS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2024-06-28 | [Grain exports up thanks to military providing Ukraine with its own logistical sea route - UCAB \| УНН](https://feedsoft.ai/events/14293-grain-exports-up-thanks-to-military-providing-ukraine-with-its-own-logistical.md) | -0.3% | -0.9% |
| CORN | 2020-03-26 | [U.S. ethanol plants cutting output due to crashing demand](https://feedsoft.ai/events/54131-u-s-ethanol-plants-cutting-output-due-to-crashing-demand.md) | +3.9% | -3.7% |
| CORN | 2021-10-03 | [Barge rates soar as logistics struggle to recover - High Plains Journal](https://feedsoft.ai/events/44428-barge-rates-soar-as-logistics-struggle-to-recover-high-plains-journal.md) | -0.2% | +3.7% |
| CORN | 2025-10-20 | [Record Harvest Creates Challenges and Opportunities for Corn as Global Demand for Biofuel Booms - RFD](https://feedsoft.ai/events/22521-record-harvest-creates-challenges-and-opportunities-for-corn-as-global-demand.md) | -0.8% | +1.2% |
| CORN | 2024-06-28 | [Army Corps of Engineers Expects Challenges with Mississippi River Navigation - ProAg](https://feedsoft.ai/events/29952-army-corps-of-engineers-expects-challenges-with-mississippi-river-navigation.md) | -0.3% | -0.9% |

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/122021-commodities-2022-logistical-challenges-to-weigh-on-us-ethanol

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