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.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: