Ethanol margins remain extremely poor with Reformulated Gasoline Blendstock for Oxygen Blending gasoline prices continuing to trade at a discount to ethanol prices. Kluis Commodities market analyst Jacob Burks says the ethanol market has been severely scarred. “There are still some mandates that have to be used, but the RBOB has recovered a little bit in the last month.” Burks thinks the reduced availability of distillers grains could also impact the number of cattle on feed. “The biggest fear now for the grains is how to maintain livestock. If we start backing up on some of these feed rations, it could be detrimental to feed numbers going into the next USDA report.”
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