is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist

Ethanol Margins Not Seen Improving

Despite more U.S. corn on hand, USDA is not expecting profit margins for ethanol to rise this fall.

Farmers are responding to surging demand for corn to make ethanol by doing what they do best: producing more corn. In 2007, estimates have the new corn crop at more than 13 billion bushels, which is well above the 10.5 billion produced in 2006.

But USDA does not expect ethanol profit margins to rise this fall despite a greater availability of corn. A Morgan Stanley analyst notes that ethanol profit margins for refiners were near 80 cents per gallon despite market prices for corn above $4.25 per bushel. That was due to higher ethanol prices.

However, ethanol prices have since slipped about 35 cents per gallon, while corn prices have remained strong. That will tighten margins for plants in operation.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.