Analysis: Ethanol profit margins to remain low in 2013

01/3/2013 | DomesticFuel.com

The drought-induced rise in corn prices will continue to drive down ethanol producers' profit margins in 2013, according to a policy brief by Bruce Babcock, director of the Center for Agricultural and Rural Development at Iowa State University. Because of high production costs and the E10 blend wall, many obligated parties are expected to draw on banked renewable identification numbers to meet their commitments under the Renewable Fuel Standard, the analysis showed.

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