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Poor Margins Continue Ethanol Consolidations

Andersons expects industry consolidation to continue

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A wave of consolidation washing through the U.S. ethanol industry has yet to run its course amid some of the worst returns in a decade, according to grain handler and ethanol-plant operator The Andersons Inc.

According to a report at Bloomberg, margins have taken a beating as President Trump’s trade war halts sales to China, exacerbating a glut of the corn-based biofuel.

That’s squeezed earnings at agribusiness giant Archer-Daniels-Midland Co. and prompted Pacific Ethanol Inc. to explore the sale of its Nebraska plants. Green Plans Inc. is also looking to sell more plants as it sharpens its focus on protein.

Read the full report here.

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