ANDE - Input Costs Are Turning Against Ethanol Producers And Their Margins
Q3 and Q4 to date have been dismal for U.S. ethanol producers for a multitude of reasons, not least being the rapid decline to the prices of crude and gasoline that has occurred since October (see figure). This decline has corresponded with adverse policy and regulatory developments that have reduced demand for U.S. ethanol both domestically and abroad, forcing ethanol producers to face steadily declining margins.
The corresponding declines to ethanol producers' share prices that has been underway throughout Q4 accelerated last week in response to the