Ethanol outlook dims as sun sets on summer

The managing director of food and ag for Compeer Financial is concerned about ethanol use with the summer driving season in the rearview mirror.

“The easy gains, if you will, on driving demand are probably done.”

Jason Johnson tells Brownfield those gains will be tougher to come by as capacity comes back online.

“So when you take that into effect, what does that mean? It means supplies are going up, production is actually sort of evening back down a little bit from where it was this summer, so it’s probably putting us back into that normal place where you just don’t have that driving demand this winter where margins are going to be thin again.”

Or possibly negative, Johnson says, depending on the location and efficiency of ethanol plants.

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