GPRE - Ethanol Headwinds Are Persisting In Q3
U.S. ethanol producers continue to face strong headwinds as the summer winds down that are negatively impacting their operating environment. The price of producers' primary feedstock, corn, has fallen further (see figure) since the beginning of Q3 as harvest expectations have remained high despite the presence of drought conditions across much of the western Corn Belt. This positive impact has been more than offset by a larger decline to the price of gasoline over the same period. Fuel ethanol is an important substitute for gasoline, with the former being blended into the latter at a