High Corn Prices Thinning Ethanol Margins

By Mark Dorenkamp

High corn prices are thinning ethanol margins. Renewable Fuels Association CEO Geoff Cooper tells Brownfield biofuel producers are concerned about market dynamics. “Especially when you think about getting into July and August, and how far is this old crop going to stretch before we get new crop coming in. But I’ll tell you, so far the industry has been able to manage these higher corn prices pretty effectively.” He says many plants remain profitable because oil prices have also been rising, and demand for ethanol co-products like dried distillers grains is strong.