Green Plains to Shut Two Iowa Ethanol Plants

Two Iowa ethanol plants owned by Green Plains will stop production, according to a report by Reuters.

Green Plains will reportedly close two Iowa ethanol facilities and throttle production at another.
Green Plains will reportedly close two Iowa ethanol facilities and throttle production at another.
(Green Plains)

Two Iowa ethanol plants owned by Green Plains will stop production, according to a report by Reuters.

Reuters quotes multiple industry sources who say the facilities in Superior and Lakota, Iowa will cease production while a third facility in Fairmont, Minnesota has throttled to half its operating capacity.

The move comes on the heels of an announcement Friday that Ergon will shutter its Vicksburg, Mississippi ethanol plant in December.

All of the closures are being blamed on thinning profit margins spurred by oversupply. The growing tariff battle with China has limited export opportunities for domestic ethanol, resulting in a nearly 30 cent drop in ethanol prices since the summer high.

AgWeb-Logo crop
Related Stories
Both classes of winter wheat ended limit up on the day as USDA shocked the market with their aggressive production cuts in the May WASDE according to Arlan Suderman, chief commodities economist, StoneX.
Agronomist Phil Long explains the critical gap between air and soil temperatures and why the “heat engine” for corn and soybeans has stalled in some areas.
Platform helps identify program stacking opportunities to diversify income from the land and make sure “the juice is worth the squeeze.”
Read Next
Fresh analysis from FAPRI finds passage of year-round E15 would bring limited near-term gains to corn prices, while SRE changes would put pressure on farm income and negatively impact soybeans.
Get News Daily
Get Market Alerts
Get News & Markets App