Renewed life in the ethanol industry is drawing the attention of Chicago Board of Trade traders and analysts, giving the corn market a boost. Ethanol producers, which spent much of the past couple of years operating in the red, lately have been enjoying wide profit margins, and as a result have been seeking more corn and ramping up production.
Just last week, with energy prices advancing, ethanol processing margins jumped to a dollar a bushel, almost doubling what they were the previous week, said Rich Feltes, vice president of research for MF Global. "They have every incentive to get their hands on every bushel of corn, and run these plants 24/seven, and push out as much ethanol as they can, pay down their debt," Mr. Feltes said. "This is Christmas time for ethanol plants."....
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