Corn Ethanol Margins Favorable -03/05/2024
Ethanol producers have enjoyed favorable margins this season despite weaker ethanol prices. Cheaper corn has been the key to improved ethanol production profitability Because of the highly subsidized state of ethanol production the quantity of corn used by ethanol plants is relatively inelastic with respect to raw margins.
Last month USDA forecast crop year US corn used in fuels production at 5.4 billion bushels, up from 5.2 billion bushels a year ago. Fuels production is the second largest US corn usage category just behind feed usage.
| Midwest Corn Ethanol Margin | |||||
| Week ending | Margin $/Bu. | Ethanol $/Gallon | 10 % Distillate Grain $/ton | Corn $Bu | year |
| 02/24/2017 | $1.45 | $1.50 | $101.50 | $3.65 | 2017 |
| 2/24/2018 | $1.78 | $1.39 | $145.00 | $3.40 | 2018 |
| 2/24/2019 | $1.16 | $1.23 | $144.38 | $3.56 | 2019 |
| 2/24/2020 | $1.15 | $1.35 | $155.39 | $4.01 | 2020 |
| 2/24/2021 | $1.52 | $1.75 | $242.61 | $5.53 | 2021 |
| 2/24/2022 | $1.52 | $2.14 | $223.85 | $6.46 | 2022 |
| 2/24/2023 | $1.60 | $2.20 | $261.00 | $6.82 | 2023 |
| 2/24/2024 | $2.08 | $1.56 | $209.25 | $4.09 | 2024 |
| Price Data based on Central Illinois. | |||||