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The estimated weekly production margin for a typical US Midwest dry-mill ethanol plant fell 7.81 cents to an 11-week low of 61.7 cents/gal, according to a Platts estimate. The decline came because ethanol prices fell far more than corn costs, while the dried distillers grain price rose to a five-week high.
Feedstock corn cost fell for a 10th straight week to $4.1915/bushel, the lowest since at least 2010, on harvest supplies.
Thinner ethanol margins can slow plant output and reduce demand for corn, while harvest-driven corn cost declines keep feed grain prices under pressure. The firmer DDGS price supports the feed co-product.
hnmszj.orgNov 30, 2016Not 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.
