Chinese ethanol tariffs drives US market towards a bearish future

In Illinois, the US ethanol industry is suddenly looking at a bear market with the end of Chinese export opportunities at the same time it is expecting to produce record volumes this year, a combination that will likely weigh heavily on prices. Production is currently well over a million barrels a day on average, coming in at 1.049 million two weeks ago with many of the big names already expecting 1 billion gallons of production this year. Import duties on US ethanol should be finalized by the end of the month.