Pacific Ethanol looking to partner on or sell assets due to negative margins

In California, DTN reports that Pacific Ethanol is actively looking to sell ethanol plants or create joint ventures in an effort to reduce its risk exposure during the current market’s era of low and negative margins. The company’s CEO said during an earnings call last week that the trade war with China has been a major factory in the negative margin climate, a sentiment echoed by ADM during its earnings call the same day that also saw significant losses. Pacific Ethanol’s CEO also pointed to the lost gallons as a result of large number of hardship waivers approved under the RFS that have led to too much supply in the market.