Falling DDGS demand could cut ethanol returns up to 30 cents per gallon

In Iowa, the net contribution of distillers grains to net returns for ethanol production is currently 1:1.25, meaning DDGS is higher in value than ethanol. With DDGS value falling due to cheaper feed grains that are putting pressure on DDGS prices, that price collapse could mean 30 cents per gallon off the return on ethanol as well.