# Ethanol Producers Turn to Alternatives

> 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.

- Date: 2017-10-11 · published 2017-10-11T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/68446-ethanol-producers-turn-to-alternatives
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

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.

## Read by commodity

- CORN: bearish ▼
- DDGS: bearish ▼

## Sources

- lexology.com: https://www.lexology.com/library/detail.aspx?g=b42cdac5-7af7-4a0b-b3ef-149cc7f6cc94

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