The Abengoa Bioenergy ethanol plants in Ravenna and York, Neb. are joining a number of other U.S. plants shutting down production temporarily until market conditions improve, according to an article by the Grand Island Independent (http://bit.ly/…).
Abengoa announced last week that the shutdown was due to an unfavorable ethanol market.
The USDA Crop Production Report released Jan. 11 revealed ending stocks lower than expected, sending corn prices upward. To combat those high corn prices and protect dwindling profit margins, a number of ethanol plants are shutting down temporarily or scaling back production.
The Nebraska plants' shutdowns are temporary; however, market conditions will dictate how long the shut-downs continue, company officials said. Abengoa intends to maintain the two plants for short-term ethanol production, even if market conditions remain unfavorable for long-term production.
According to the Nebraska Ethanol Board, four or five other Nebraska plants are operating sporadically, while one did not produce any ethanol in 2012.
Cheryl Anderson can be reached at Cheryl.email@example.com
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