Ethanol Prices Soften as Record Corn Supply Weighs on Biofuels

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Production vs Demand

While export demand remains a bright spot, domestic blending is seasonally slow. The surplus of ethanol is weighing on prices, though the floor provided by federal mandates prevents a collapse.

Margin Outlook

Producer margins are thin but positive. Unless corn prices rally unexpectedly, ethanol is likely to remain in this low-price regime through the first quarter.