Exports or cut in production needed to balance ethanol market

February 18, 2016 |

In Louisiana, analysts say that if ethanol producers keep at January’s pace, there will be about 800 million gallons too much produced this year that will need to be exported or risk flooding the domestic market, a real concern for producers already suffering from low margins. Without demand from China to support international trade, producers will have to seek out new markets to absorb the extra supplies are start winding back production. With another six weeks to go before plants traditionally close down for annual maintenance, plants that don’t voluntarily shut down will put the rest of the industry in danger.

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Category: Producer News

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