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Shares of US ethanol producers such as Green Plains, REX American and Pacific Ethanol have largely recovered to pre-lockdown levels. Ethanol production margins have rebounded to near three-year highs on a 34% rise in ethanol prices since April lows, versus 7% gains in corn and natural gas.
Gasoline demand remains below normal, limiting full recovery.
Strong ethanol margins encourage plants to run harder, supporting corn grind demand and DDGS output. Incomplete gasoline recovery caps the upside, so corn demand from ethanol stays dependent on fuel consumption.
mnbiofuels.orgLiliana TovarJun 24, 2020Not enough comparable past events yet for a historical read.
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.
