Ethanol Blog

Profit margins for ethanol producers have found underlying strength in the current market from a supply squeeze, with margins ranging from 30.0cts to 50.0cts gallon, said Brandan Marshall, ethanol analyst for Northstar Commodities, Minneapolis, Minn. "Over last couple of weeks production is up and stocks are lower," Marshall explained. "The tight supply is favoring ethanol producers."

Data released by the Energy Information Administration Oct. 9 showed total ethanol stocks fell to a record low of 15.4 million bbl for the week ended Oct. 4. Supply shortages continue to be reported in the Midwest production region amid strong demand from markets along the East and West coasts.

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

(BM/CZ)

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