Key Takeaways: 

The recent pullback in crude oil and other energy markets has left many in the ag and biofuels communities wondering what it means for ethanol and biodiesel prices and profit margins. WPI’s research indicates a weak but still significant link between ethanol and crude oil prices, suggesting ethanol values will remain under pressure if progress toward peace in the Persian Gulf continues. Ethanol prices are expected to slip about 8 percent by late February but remain 3 percent above year-ago values. Combined with higher DDGS prices, this means ethanol margins will contract over the next 16 weeks but remain positive and above year-ago levels. Ethanol production, consequently, should remain strong as margins will not...