# U.S. ethanol plants expected to cut output on poor margins, oversupply

> Ethanol production margins in the U.S. Corn Belt have fallen to a four-year seasonal low, and producers are expected to cut output. Ethanol inventories are at their highest seasonal level since at least 2010, even though production itself reached its highest seasonal level since 2010.

- Date: 2019-07-19 · published 2019-07-19T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/58098-u-s-ethanol-plants-expected-to-cut-output-on-poor-margins-oversupply
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Lower ethanol grind reduces corn demand and co-product (DDGS) supply, which weighs on corn prices while tightening DDGS availability for feeders.

## Read by commodity

- CORN: bearish ▼
- DDGS: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/article/us-usa-ethanol-production/u-s-ethanol-plants-expected-to-cut-output-on-poor-margins-oversupply-idUSKCN1UE0D6/

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