CoBank predicts solid 2024 For US biofuels industry

In North Dakota, Ethanol Producer Magazine reported that CoBank’s Knowledge Exchange released a report that predicts that both ethanol producers and soybean crushers will benefit from rising demand for biofuels in 2024. 

“The biofuel sector at large carries the momentum of historically large profit margins into the new year,” CoBank wrote in the report. With renewable identification number (RIN) prices declining, selling renewable diesel outside of the California market is expected to be less profitable. Ethanol margins are expected to remain comparatively healthy in 2024 due to a combination of affordable natural gas prices and corn prices that are under pressure from a record harvest and weak export demand. 

A slowing global economy and surplus of energy on the work market is currently depressing fuel and ethanol prices. The risk of conflict spreading in the Middle East and disrupting supply lines among oil-exporting countries could result in a global energy shock and surge in fuel and ethanol prices, according to the report.

More on the story.