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U.S. Ethanol Plants Expected to Cut Output

Cuts due to steep rise in Midwest corn prices, U.S-China trade dispute

Fuel pump

In the coming weeks ahead, U.S. ethanol plants will sharply cut down on their output.

According to a report at Hoosier Ag Today, this is due to a steep rise in Midwest corn prices and the U.S-China trade dispute, which have both led to weak margins and oversupply.

Most U.S. ethanol production takes place in the Corn Belt.

The margins to produce ethanol in that region have fallen to a four-year seasonal low, while ethanol inventories haven’t been this high in nine years.

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