American ethanol plants are expected to sharply cut down on their output in the coming weeks. Quad County Corn Processors CEO DeLayne Johnson says oversupply is the biggest reason and the trade dispute with China also factors in.
He says while recent exports have helped, tariffs from two of the U.S.’s biggest ethanol customers are countering that.
Johnson says biofuel processors will need to diversify their operations moving forward.
The margins to produce ethanol in the western corn belt have fallen to a four-year seasonal low while ethanol inventories are at their highest level in nine years.
