Ethanol Blog

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.

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