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The Impact Of Low Stocks-To-Use Ratio And The Ukraine-Russia Conflict On The Distillers-To-Corn Price Ratio, Elliott James Dennis
The Impact Of Low Stocks-To-Use Ratio And The Ukraine-Russia Conflict On The Distillers-To-Corn Price Ratio, Elliott James Dennis
Center for Agricultural Profitability
Distillers’ grains play an important role in both maintaining ethanol plant profit margins and providing affordable, nutritious feed to livestock feeding operations. Distillers’ grains are produced as necessary by-products of the fuel ethanol production process and therefore rely on an input grain – most commonly corn in the United States – and fuel ethanol in their production (USDA ERS 2021). As a result, the primary tenets of the supply structure in the distillers’ grains market In the United States are fuel ethanol and corn, while livestock operations in need of feed products comprise the majority of distillers’ grain demand structure.