User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


18° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Back to all news

Agriculture

Find local businesses
on the KELO Pages!

 

High Corn Prices Hurting Ethanol Industry

July 11, 2012, 9:55 PM by Perry Groten

High Corn Prices Hurting Ethanol Industry
SIOUX FALLS, SD -

South Dakota ethanol plants are feeling the pinch of rising corn prices caused by a dry growing season.  But the ethanol industry is placing as much blame on Wall Street speculators as the weather itself.

Corn is ethanol's vital ingredient, so any jump in price is felt at the plant.

"And what we've seen this year is that corn price increases have sort of outpaced ethanol price increases and so that has put a squeeze on the producer," American Coalition for Ethanol Executive Vice-President Brian Jennings said.

Each ethanol plant feels the effect of higher corn prices differently.

"I think what really is going to make the difference for plants is what sort of financial position are they in going into this tough spell," Jennings said.

Some plants may have to cut back on production, others may have to temporarily shut down.

"And it's a step they would rather not take and so I think it will be a last resort and these plants and their boards of directors and their management are going to do whatever they can to avoid that," Jennings said.

Jennings says it's far too early in the summer to write off the corn crop yet.  He says speculators are taking advantage of the dry season by artificially bidding-up the price.

"Folks sitting in high-rise buildings in New York and Chicago are watching all the press attention on the drought.  They don't grow a bushel of corn.  They don't make a gallon of ethanol, but they're looking at this as a financial opportunity for them to take advantage of the market," Jennings said.

With 330 million bushels of South Dakota corn going into the ethanol production every year, both farmers and ethanol plants have a lot riding on parched fields this summer.

The Sioux Falls-based ethanol company POET says one way the industry can protect itself from rising corn prices is by diversifying its product line to include corn byproducts and wood waste.

Previous Story

Next Story


Comments







 
Find Local Businesses on KELO Pages!

View agriculture

You may also like

Agriculture Holding Strong In South Dakota

11/21/2014 10:00 PM

South Dakota's largest industry is holding strong, according to attendees of an agriculture conference in Aberdeen.

Full Story | Watch
SD Group Sponsoring Farming Training For Veterans

11/23/2014 12:05 PM

A nonprofit organization that assists veterans and their families is sponsoring scholarships for a farmer and rancher training program.

Full Story
South Dakota Corn, Sunflower Harvests Wrapping Up

11/25/2014 9:31 AM

South Dakota farmers are wrapping up the corn and sunflower harvests.

Full Story
Monday Ag Markets

11/24/2014 1:32 PM

Here's a look at agriculture markets as of noon Monday: 

Full Story
Friday Ag Markets

11/21/2014 1:44 PM

Here's a look at agriculture markets as of noon Friday:

Full Story


Events