Ethanol Plants Showing Strong Profits

Higher corn prices haven’t put a dent in profits for ethanol plants thanks to strong demand for the biofuel and higher prices for dried distillers grain.

Ethanol plants in Iowa are earning a profit of about 27 cents for every gallon produced, compared to a loss of 6 cents per gallon as recently as July, according to Ag Trader Talk, an online grains-information service in Clive, Iowa.

“If you’re not making money in ethanol right now, you have a problem with your production process,” said Jason Ward, an analyst at Northstar Commodity Investments LLC in Minneapolis. “They’ve got three of the four main components working in their favor.”


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