Corn Profitable for Farmers, Less So for Ethanol
by Dan Piller (Des Moines Register) The surge in corn prices since mid-2010 has bolstered the profits of corn farmers but has eaten away at the profitability of ethanol producers.
…Ethanol producers meanwhile saw a dramatic drop in their margins from 35 cents per gallon in November to just 2 cents per gallon in December, as higher corn costs began to make themselves felt.
“We have to pay cash for corn and can’t contract ethanol on the futures board, so it’s hard to stay ahead of rising prices,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association. READ MORE