Flooded ethanol industry threatens US mandates
13 Jun 2008
By Timothy Gardner
NEW YORK, June 13 (Reuters) – Floods in the Midwest that have pushed corn prices to record levels have wiped out profits for making U.S. ethanol and threaten to sink production of the fuel below government mandates.
lifting food prices at a time of mounting hunger problems.
average U.S. producers now lose 8 cents for every gallon of ethanol distilled, compared with a profit margin of 20 cents a gallon two weeks ago.
2 billion to 5 billion gallons of ethanol “could go offline in the next few months due to high corn prices
if corn prices don’t fall, outages in the ethanol industry could match dismal production in the biodiesel industry where plants run at about half of their capacity because of high prices for soy bean oil, the main feedstock.