Jump to content
Sign in to follow this  

Uncertain future looms for corn-based ethanol

Recommended Posts

These are precarious times for the corn-based ethanol industry.


Catastrophic flooding across the Midwest this spring inundated millions of acres of already-planted corn and land slated for planting. With corn prices already above $7 a bushel - more than triple what they were only three years ago - a significantly reduced corn crop will send them even higher.


How much higher is anybody's guess as the summer growing season moves into July.


Mark Sponsler, director of Greeley-based Colorado Corn, said he's not sure the Midwestern corn crop is as damaged as many media reports would indicate. But he does acknowledge there will be less corn grown this year and smaller yields in many fields.


That will undoubtedly push up prices, and while that's good for Colorado corn growers and others not impacted by the floods it means troubling times for the fledgling corn-based ethanol industry.


"It will drive (corn prices) up, and that makes it a very uncomfortable time for ethanol plants that need to get a decade or so of profitability so that base of infrastructure can become healthy," he said. "I don't think any of their business models contemplated $7 to $8 corn."



Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Create New...