Ethanol margins shrink as prices fall faster than corn prices

In Illinois, ethanol production has fallen 4.5% on the week to 889,000 barrels a day, the lowest volume since March, as margins begin to squeeze due to ethanol prices falling faster than corn prices. Margins are currently running at about 15 cents per gallon, down from 50 cents a month ago. With the corn harvest just now really getting going, prices will likely fall again, which may again trigger a jump in ethanol production.