Ethanol Blog

Negative profit margins continue to plague U.S. ethanol producers, according to Jarrod Kitt, strategist for the Linn Group, Chicago.

"Margins are definitely still in the red for pretty much everybody," Kitt told Telvent DTN this morning. "It's not as bad as it was two or three months ago, (but margins are still at0 10 cents a gallon losses."

He said the industry struggled for months, and more plants would likely be idled before ethanol production economics improve.

"When you flip the U.S. from a net (ethanol) exporter to a net importer, if you to point to anything, that's your main problem," Kitt offered. "The drought didn't help either."

Myke Feinman can be reached at myke.feinman@telventdtn.com.

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