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A CoBank Knowledge Exchange report expects ethanol margins to turn slim to negative as corn prices sit at multi-year lows and new capacity pushes supply past demand growth. The report says well-capitalized producers are best placed to withstand the downturn and that consolidation could follow.
Expected margin pressure and capacity growth point to weaker ethanol output or consolidation ahead, which would reduce corn demand over time. Lower corn prices remain the main driver for feed buyers.
biofuelsdigest.comMeghan SappAug 17, 2017After 1,102 past bearish report events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.8% to +1.3%), and +0.0% over 20.
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.
