US Ethanol Industry is Doing Well
Lorrie Boyer
Reporter
“Ethanol right now is doing pretty well. We're seeing a bit of a revival in margins, which is really interesting. We just had the EIA, by the way. So I'll sprinkle some of the what just happened into this conversation. We are having seasonally very high margins, both at a plant level and on a board crush level, just taking corn at 2.8 - 2.9 Depending on your conversion factor, and turning that into ethanol. It's like 15-16 cents. So that's really good news. Now, it's a little bit confounding to be perfectly honest with you because we have the highest pad to inventories we've ever printed. We have extremely high inventories across the board. Demand has been not great. It's not terrible, but it's not like we're seeing year-on-year increases in demand.”
As for ethanol exports-
“Export to the best they've been in years that is led predominantly by Brazil's switch to more sweeteners Brazil's increase in sugar pricing. So we're seeing the United States a lot more competitive in a lot of different export markets. In
a discussion between five and Angie Setzer of Consus Ag consulting, he said the next big thing in the ethanol space is lowering carbon credit intensity at ethanol plants to align with the current and emerging renewable diesel industry and the upcoming sustainable aviation fuel industry.
