As of last week, according to the Renewable Fuel Association (RFA), 73 of the nation’s 200 ethanol plants are idled and 70 percent are operating at reduced capacity. This would imply that 57 are still operating at normal output levels. Those plants have seen their gross margins bounce on DDGS and distillers corn oil prices, and a drop in corn and natural gas costs. However, as an industry, the picture is bleak when extrapolating the margins across production levels and comparing to the industry’s sunk capital and fixed costs.  Demand for motor fuel has hit its lowest levels in decades because of the limits on travel and the general economic slowdown caused by the mitigation efforts for COVID-19. Now that we’re c...

TAGS – Biofuels, Energy, North America