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Ethanol producers face thin margins as record U.S. output and high inventories have depressed prices, which EIA expects to set an annual production record in 2017. Iowa State research shows return over operating costs has struggled to exceed $0.25 per gallon this year, versus over $0.50 before 2015.
Green Plains idled about 50 million gallons of capacity in Q2, and producers are increasingly turning to alternative uses.
Idled plants and tight margins reduce corn grind and DDGS output over time, but record ethanol supply keeps ethanol and DDGS prices under pressure for feed buyers.
lexology.comBryan Cave Leighton Paisner LLP -
Rozan Simoni and J. Nicholas HappeOct 11, 2017Not 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.
