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AMIS Market Monitor

last release: October 2018

Ethanol Update

Chart description

Chart description

The ethanol margin gives an indication of the profitability of ethanol production from maize in the United States. It uses current market prices for maize, Dried Distillers Grains (a valuable by-product of maize-based ethanol production) and ethanol, with an additional $0.55 per gallon of production costs. 

  • Ethanol production in September fell below an annual production pace of 16 billion gallons for the first time since May after setting a record production pace of over 16.6 billion gallons (annually) in August.
  • Ethanol production margins in September remained negative for the second month in a row.
  • Ethanol prices fell sharply, which more than offset falling maize prices and rising DDGs receipts.
  • Ethanol futures prices fell below energy equivalence relative to RBOB gasoline, hitting 63.6 percent, the lowest ratio since the recorded series began in 2007.