Higher natural gas prices to bite into ethanol margins

In Illinois, higher natural gas prices as a result of the major cold snap across much of the US is expected to weigh on profits of ethanol producers as their costs rise in response. Logistical challenges in moving product to demand centers on the coast as well as the turnaround time for rail cars has already pushed ethanol prices higher on the coasts, but rising stocks in the Midwest mean those higher prices aren’t reaching producers.