Wednesday, November 19, 2014

The Future of Corn & Ethanol Prices

Corn is a major feedstock for domestic ethanol production, when corn prices move, expect ethanol to follow closely behind.
Roughly a third of domestic corn is used to produce ethanol, and with harvests starting earlier and ending later, that number is only projected to rise.
However, the relationship between corn and ethanol isn't that simple. In the event of a corn surplus, ramped-up ethanol production alone can't entirely stem the overflow from corn inventories, but it will assist in limiting the price fallout from the build-up. (more)

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