Record corn prices and sluggish gasoline demand are squeezing profits for U.S. ethanol companies, prompting some producers to idle plants or slow production.
Valero Energy Corp., VLO +2.33% Abengoa Bioenergy US Holding Inc. ABG.MC +5.36%and Nedak Ethanol LLC have idled plants since mid-June, citing poor market conditions for the corn-based fuel additive. And Archer Daniels Midland Co., ADM +1.76% the biggest U.S. ethanol producer by capacity, said that its ethanol margins had eroded to a loss of well over 20 cents a gallon.
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