Biofuels Digest Indexâ„¢ rises 0.89% as the market returns to biofuels for second consecutive day

The Biofuels Digest Indexâ„¢, a basket of 21 public biofuel stocks, rose 0.89% to 100.16 as investors returned to the sector for a second straight day following a capital flight earlier in the week. Oil rose to more than $82 per barrel, prompting reconsideration of the merits of Big Ethanol.

Major ethanol players Pacific Ethanol (PEIX), Aventine (AVR), VeraSun Energy (VSE) and Archer-Daniels-Midland (ADM) were all up for the day, with Pacific Ethanol rising 8.97% to $9.48.

Earlier in the day, all major ethanol stocks were down on news of a downgrade by Goldman Sachs analyst Arjun Murti. Murti cited poor pricing and cost outlooks in cutting his share price targets and said that there might be a “dead cat bounce” proving short term gains as investors took advantage of the low stock price, but that fundamentally the stocks would continue their downward spiral.

The broader markets were up modestly today, with the Dow up 34.79 points to 13912.94, the S&P up 5.96 to 1531.38, and the Nasdaq up 10.56 to 2709.59.

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