Ethanol Blog

U.S. spot ethanol prices firmed in early trade Thursday, with the gains driven by worries about tight supply of ethanol and corn in the United States.

Chicago Board of Trade May corn futures rallied today amid short covering ahead of a key crop report due out tomorrow that's expected to show lower stocks of old corn crop while demand is up.

A lack of corn has forced some ethanol plants to shut down or cut runs, reducing ethanol supply as well, said Neil Koehler, chief executive of Pacific Ethanol Inc., Inc. He expects tight market conditions to continue through the third quarter, with summer peak driving season around the corner.

George Orwel can be reached at george.orwel@telventdtn.com.

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