# ADM's move to spin off ethanol assets speaks to industry's woes - AgCanada

> ADM said it may spin off three large dry mills that produce mainly ethanol after failing to find a buyer since 2016. Ethanol production hit 1.05 million barrels per day, the highest seasonal level in at least five years, amid China tariffs and overcapacity.

- Date: 2019-04-26 · published 2019-04-26T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/59593-adm-s-move-to-spin-off-ethanol-assets-speaks-to-industry-s-woes-agcanada
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Excess ethanol output and consolidation pressure keep ethanol margins weak, which can sustain corn grind for fuel and DDGS supply, with the net effect on feed-grain prices being modest.

## Read by commodity

- CORN: neutral
- DDGS: neutral

## Sources

- agcanada.com: https://www.agcanada.com/daily/adms-move-to-spin-off-ethanol-assets-speaks-to-industrys-woes

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