Valero idles second ethanol plant as corn, fuel prices misalign
In Indiana, Valero Energy has closed down production at a second production plant, citing market conditions. The second closing, at its 120 million gallon per year plant at Linden, Indiana, follows a similar production halt at its 120 Mgy Albion, Nebraska plant last week. “We expect market conditions to improve to the point that we can restart production at the plants before the fall harvest,” a company spokesman told MarketWatch.
Overall, according to figures released by the Energy Information Administration, US ethanol production averaged 883,000 barrels per day (b/d) – or 37.09 million gallons daily, the second-lowest weekly output figure of the year. Stocks of ethanol stood at 20.8 million barrels, or more than a 25-day supply, with overall ethanol production at 9.98%, only the second time this year the percentage has been below 10%. US corn prices have risen in recent weeks to $6.63 for the July CBOT contract, up $1 per bushel since the start of the month, while the July CBOT ethanol contract is up 10 percent, or 20 cents per gallon, to $2.209, since the beginning of June.
Category: Fuels
