Rough Week for Ethanol Stocks

Ethanol stocks took a beating this past week as corn soared and ethanol stalled. The top losers were Pacific Ethanol and VeraSun as shares of the two companies collapsed 22% and 20%, respectively. Corn finished strong on Friday, settling 20 cents higher to $4.95 per bushel on lower-than-expected crop production, quarterly stocks, and ending stocks data. As for ethanol, prices have dropped 21 cents since hitting $2.42 per gallon on January 2nd. As a result, ethanol's crush spread has dropped significantly to $1.18.

CBOT ethanol price
CBOT corn price
Crush spread
January 11th     
January 2nd
December 18th
December 15th
 $2.08  $4.38
December 10th
 $1.88 $4.17  $1.09
November 19th
 $1.81 $3.94  $1.12
October 16th
 $1.61 $3.74 $.77
September 1st
 $1.54  $3.69  $.62


What did you think of this article?

  • No trackbacks exist for this entry.
  • No comments exist for this entry.
Leave a comment

Submitted comments will be subject to moderation before being displayed.

 Enter the above security code (required)


 Email (will not be published)


Your comment is 0 characters limited to 3000 characters.