# Report: ethanol consolidation likely as margins decline. - Free Online Library

> CoBank's report says ethanol margins will turn slim to negative as corn prices at multi-year lows and new capacity push supply past demand. Ethanol output is forecast to rise 850-900 million gallons by 2020 versus 2017 levels. The report expects consolidation favoring well-capitalized producers.

- Date: 2017-09-01 · published 2017-09-01T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/68960-report-ethanol-consolidation-likely-as-margins-decline-free-online-library
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Projected production growth without matching demand gains implies lower ethanol margins and possible plant closures, which would reduce future corn and DDGS demand over the medium term.

## Read by commodity

- CORN: bearish ▼
- DDGS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2017-08-17 | [CoBank report says ethanol industry will soon face worsening margins that could lead to consolidation  : The Daily Digest](https://feedsoft.ai/events/69458-cobank-report-says-ethanol-industry-will-soon-face-worsening-margins-that-could.md) | -2.7% | -3.9% |
| CORN | 2023-06-09 | [Corn and soy export expectations drop in Friday's WASDE report](https://feedsoft.ai/events/35443-corn-and-soy-export-expectations-drop-in-friday-s-wasde-report.md) | +4.4% | -4.7% |
| CORN | 2025-01-29 | [Ethanol production, stocks see declines - Brownfield Ag News](https://feedsoft.ai/events/26495-ethanol-production-stocks-see-declines-brownfield-ag-news.md) | +1.0% | -1.0% |
| CORN | 2022-03-10 | [March WASDE Report Not a Huge Surprise, but Wheat Liquidation Continues](https://feedsoft.ai/events/42240-march-wasde-report-not-a-huge-surprise-but-wheat-liquidation-continues.md) | +2.5% | +11.8% |
| CORN | 2025-04-02 | [February corn consumption declines 6% year-over-year](https://feedsoft.ai/events/25210-february-corn-consumption-declines-6-year-over-year.md) | +1.0% | +2.5% |

## Sources

- thefreelibrary.com: https://www.thefreelibrary.com/Report%3a+ethanol+consolidation+likely+as+margins+decline.-a0519723828

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