CoBank highlights ethanol industrys strong Q2
Summary
The ethanol industry experienced few visible signs of demand destruction during the second quarter despite a spike in retail gasoline prices, rising inflation, aggressive Federal Reserve interest rate actions, a significant showdown in the U.S. economy and deteriorating consumer sentiment, according to CoBank. CoBank said the relatively high margins were driven by a 16 percent increase in fuel ethanol prices, which exceed input costs of corn and natural gas. U.S. ethanol exports reached a four-year high in April, at 185 million gallons, with sales diversified among several key trading partners. U.S. exports of dried distillers grains (DDGS) were also up during the fourth month period, but at a lower rate of 8 percent. A full copy the CoBank Knowledge Exchange’s latest quarterly report can be downloaded from the company’s website.