Ethanol Prices Under Pressure from Record Production and Stock Builds

Surplus Production Challenges

Record-high corn yields and stable natural gas costs have incentivized ethanol plants to run at near-peak capacity. However, with gasoline demand seasonally weak, the excess production is moving into storage, weighing heavily on spot market offers.

Export Market Reliance

Producers are pinning their hopes on export growth to Canada and India to clear the domestic glut. While international shipments are up, they have yet to offset the overwhelming volume of US production, keeping a lid on any potential price recovery.