# CoBank report says ethanol industry will soon face worsening margins that could lead to consolidation  : The Daily Digest

> 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.

- Date: 2017-08-17 · published 2017-08-17T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/69458-cobank-report-says-ethanol-industry-will-soon-face-worsening-margins-that-could
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

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.

## Read by commodity

- CORN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2017-09-01 | [Report: ethanol consolidation likely as margins decline. - Free Online Library](https://feedsoft.ai/events/68960-report-ethanol-consolidation-likely-as-margins-decline-free-online-library.md) | -0.4% | +0.8% |
| CORN | 2023-12-23 | [CoBank predicts solid 2024 For US biofuels industry  : The Daily Digest](https://feedsoft.ai/events/32677-cobank-predicts-solid-2024-for-us-biofuels-industry-the-daily-digest.md) | +1.9% | -1.6% |
| CORN | 2024-06-03 | [Corn use for ethanol and soy for biodiesel fall due to season maintenance  : The Daily Digest](https://feedsoft.ai/events/29868-corn-use-for-ethanol-and-soy-for-biodiesel-fall-due-to-season-maintenance-the.md) | -1.6% | -6.0% |
| CORN | 2021-01-19 | [CoBank: Ethanol Industry Continues To Recover in Q4](https://feedsoft.ai/events/49146-cobank-ethanol-industry-continues-to-recover-in-q4.md) | +0.0% | +0.0% |
| CORN | 2025-03-13 | [Ethanol stocks continue to grow despite lower production and higher exports  : The Daily Digest](https://feedsoft.ai/events/25566-ethanol-stocks-continue-to-grow-despite-lower-production-and-higher-exports-the.md) | +6.5% | +5.2% |

## Sources

- biofuelsdigest.com: https://biofuelsdigest.com/cobank-report-says-ethanol-industry-will-soon-face-worsening-margins-that-could-lead-to-consolidation/

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