The Ethanol, Corn Relationship: A Silver Lining

Ethanol Producer Magazine March 2009
By Hunt Stookey

The ethanol industry was hit hard in 2008 with a steep rise in corn prices. However, the episode should provide a risk management advantage in 2009.

It’s been a wild, unexpected ride for ethanol producers over the past two years. While the ethanol business may be less profitable now than it was in 2006, it is also a lot less risky. The reason: the price of corn has been pegged to the price of ethanol, eliminating a big source of commodity risk in the business.

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