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.

Date
CBOT ethanol price
CBOT corn price
Crush spread
January 11th     
 $2.21
 $4.95
 $1.18
January 2nd
 $2.42
 $4.62
 $2.15
December 18th
 $2.13
 $4.32
 $1.66
December 15th
 $2.08  $4.38
 $1.44
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

 

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