US and Brazil both seen scaling back ethanol production over next few months

In New York, Reuters reports that both the US and Brazil are expected to cut ethanol production over the next few months as rising feedstock prices for corn and sugar, respectively, make production uneconomical. Supplies for both feedstocks are tight, squeezing margins while high ethanol prices are making gasoline more expensive at the pump rather than cheaper. Brazilian sugar mills will focus more on sugar production but US ethanol producers will likely pull back production runs. China’s demand for US corn imports is further tightening the domestic supply situation.