WSJ reports on “renewed life in the ethanol industry”; crush spread over $1 per gallon

In Illinois, the Wall Street Journal is reporting on “renewed life in the ethanol industry” and what Rich Feltes, vice president of research for MF Global, described to the Journal as “Christmas time for ethanol plants.” The report refers to an increasing “crush spread” between the price of corn and the price of ethanol, which now exceeds $1 per gallon after falling into negative territory during much of 2008.

According to the Journal report, a bumper corn crop has reduced corn prices by 28.5 percent since June, while ethanol futures have increased 2 percent, leading ethanol producers to aggressively seek corn to process into ethanol and pay down debt.

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