Smaller corn acreage seen cutting 2017/18 ending stocks
February 21, 2017
| Meghan Sapp
In Illinois, analysts expect farmers to plant fewer corn acres this spring with a focus instead on more soybean production, a decision that will lead to tighter ending stocks in 2017/18 that will in turn boost production costs for ethanol that could shrink margins if ethanol prices don’t rise in line with the increased corn prices. Though corn yields have been above average for the past three seasons, if yields are higher for a fourth season it won’t be enough to compensate for lower acreage.
Category: Fuels