SDnotiller - 9/17/2018 22:11

yeah I have a problem with believing ethanol isn't profitable right now. Corn has been higher with gas cheaper, so why is it Armageddon for ethanol all of a sudden? Serious question, not being sarcastic. Ethanol should be able to stand on its own without needing help from .gov[/

Plants buy basis, not flat price. Best margins were when corn was $7. To your point, corn basis is very cheap right now. The ethanol market is the weakest it’s been in 12 years, and Ddgs aren’t making up the difference. Plants are running in the red, there will be more slowdowns in the next week with margin outlooks looking grim for OND