Energy/Ethanol Outlook: Is There Hope for an Ethanol Boom?
by Bryce Knorr (Farm Progress) Biofuel bust could get a little relief soon. — Pain at the pump could mean at least a little gain for corn growers. Demand for ethanol should start to increase soon, with or without final confirmation of year-round E15 usage by the EPA. Credit a surge in gasoline costs that’s making ethanol much more competitive for blending, even before the summer driving season kicks into gear.
The industry needs all the help it can get after suffering through an extended period of unprofitable margins. Don’t expect another boom like the one that helped fuel the big rally in corn prices a decade ago.
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Gasoline futures currently trade at a 55% premium to ethanol, enough to encourage higher rates of blending. READ MORE