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FTC Says Ethanol Industry Still Competitive

Dan Energy, Industry News Release

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The U.S. ethanol industry continues to have a “low level of concentration and a large number of market participants,” according to the annual Ethanol Market Concentration Report by the Federal Trade Commission (FTC). The agency’s annual update concluded: “The exercise of market power to set prices or coordination on price and output levels, is unlikely.” Pro Farmer’s First Thing Today says the report was approved 3-0 and echoes assessments from prior years. U.S. ethanol industry margins through the first nine months of 2016 followed a seasonality pattern similar to that seen in 2015. Margins were negative or low in January of 2016 but increased and remained positive as demand surged during the spring and summer driving season. The FTC is required under the 2005 energy law to release the report annually.

From the National Association of Farm Broadcasting news service.