Ethanol Futures Steady Amidst Record High Production Rates

Export Demand Boom

US ethanol exports are on track for a record year, driven by rising blending mandates in India, Canada, and the UK. This international appetite is absorbing record-breaking domestic production, which recently surpassed pre-pandemic levels. The global push for biofuels as a carbon reduction tool is providing a consistent tailwind for the sector.

Corn Feedstock Economics

Corn prices have recently trended toward $4.40 per bushel, increasing the cost of production for ethanol mills. However, producers have been able to pass these costs through due to strong demand for biofuels and high-value co-products like distillers grains. The market remains balanced despite the rise in input costs.