Ethanol Blog
Myke Feinman Refine Fuels Reporter

Tuesday 03/19/13

Ethanol Producers Holding Back to Avoid Overproducing

Despite higher profit margins for ethanol producers, production has been slow to pick up, commented Jerrod Kitt, strategist for the Linn Group, Chicago, Illinois.

"You've had a tremendous increase in producer margins," Kitt said, saying they were at 15.0 cents a gallon now.

"For the most part, they've (ethanol producers) been a little bit slow to respond to that.

He links two factors for the sluggish increase in ethanol production.

"They've learned lessons from past -- don't overproduce. Also, there is a problem with railcars. The coasts have largely been subsisting off imports from Brazil. This time of year, those kind of get shut off."

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

Posted at 1:51PM CDT 03/19/13 by Myke Feinman
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