Ethanol Blog

Tuesday 12/04/12

Negative Margins Prompt Slowdown in Ethanol Production

Negative margins for ethanol producers are prompting a slowdown in output, Jerrod Kitt, strategist for the Linn Group in Chicago told DTN this morning.

"There's no doubt about, there's disappointing (margins for) ethanol production," Kitt said. "We haven't seen (the) typical seasonal expansion that these guys count on and that's ringing alarm bells."

Kitt said producers have had a problem with margins for 11 months, an unusually long period.

"We're still at near all-time lows that imply production margins just aren't good. These guys haven't made money all year and still aren't."

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

Posted at 1:33PM CST 12/04/12
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