CoBank: Ethanol Industry Delivers Strong Q2 Results

  • Wednesday, 19 July 2023 09:09

Ethanol Producer Magazine

Jul 18, 2023

The U.S. ethanol industry delivered strong second quarter results with steady production and above-average profitability, according to statements made by CoBank in its latest quarterly research report, released July 13. 

CoBank said that pretax operating margins for the three-month period averaged 45 cents per gallon through late June, well above the average profit margins of 32 cents per gallon year-to-date and 28 cents per gallon long-term. 

Production during the second quarter averaged 15.4 billion gallons annualized vs. 15.2 billion gallons sequentially, which modestly exceeded the five-year average levels, according to the report. 

CoBank also discusses expectations for this year’s corn crop within the report. Although the USDA currently forecasts a record large U.S. corn crop at 15.32 billion bushels on expanded acreage, CoBank cautioned that crop conditions across the Central U.S. are below historical averages. Mild temperatures in the Midwest thus far have prevented a faster decline in corn crop conditions, CoBank noted, but said July weather during corn pollination will be key to establishing yield potential. 

A full copy of the quarterly report is available on the CoBank website

Read the original story here.