Ethanol margins recovering post-pandemic

July 13, 2020 |

In Nebraska, DTN reports that ethanol margins continue to improve after sliding dep into negative territory on the back of the COVID-19 pandemic and sinking global fuel prices. States are reducing travel restrictions and summer driving is expected to pick up which will in turn boost ethanol demand. Production remains well below demand which is helping to strengthen prices and improve margins. DTN estimates that margins are back in positive territory at 4 cents per gallon compared to negative 16.1 cents per gallon on May 22 when it last calculated margins using its hypothetical ethanol plants. If a plant doesn’t have debt, then margins are at a healthy 35 cent per gallon level.

Category: Fuels

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