In a December 4 Top Idea article I presented an ethanol industry pair trade that consisted of a long position in REX American Resources (REX) and a smaller short position in Pacific Ethanol (PEIX). The article proposed the pair trade as a means of investing in the underperforming corn ethanol production sector while minimizing downside exposure in an uncertain operating environment. Specifically, the pair trade was predicated on a bullish outlook for the sector but balanced by the recognition that substantial downside existed in the event that policy and economic developments