# Ethanol Overproduction Hurting Margins as Domestic Demand Falls - Governors' Biofuels Coalition

> DTN's hypothetical 50-million-gallon South Dakota ethanol plant is reporting deeper losses as corn prices rise and ethanol prices fall. Total domestic ethanol inventories reached a 27-week high in early December while blending fell to 755,000 bpd, the lowest since May.

- Date: 2020-12-10 · published 2020-12-10T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/49637-ethanol-overproduction-hurting-margins-as-domestic-demand-falls-governors
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Rising corn costs combined with oversupplied ethanol and weak blending demand cut plant margins, which can force production curtailments and reduce DDGS output, supporting corn-ethanol demand weakness and firmer corn costs.

## Read by commodity

- CORN: bullish ▲
- DDGS: bullish ▲

## Sources

- governorsbiofuelscoalition.org: https://www.governorsbiofuelscoalition.org/ethanol-overproduction-hurting-margins-as-domestic-demand-falls/

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