Ethanol production returns to profitability on corn price drop, ethanol rise

In New York, DTN and Reuters are reporting that the ethanol crush spread, or price differential between the price of ethanol and corn feedstock, has increased to 29 cents, or around the breakeven point for US ethanol producers. A slight increase in ethanol prices to $1.60 per gallon at the Chicago Board of Trade, combined with a drop in corn prices to $3.66 for the March contract, produced the improving ethanol economics. Reuters reports that margins are in the 5 cent range after overhead and natural gas input costs.

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