Are Ethanol Producers Going to Suspend Ethanol Production?
Is ethanol production expanding too quickly that we need to slow down? From the U.S. ethanol producers perspective, the answer is YES. If anyone has noticed, it seems as if a new ethanol plant is being built or planned each day. This demand to produce ethanol has caused corn prices to be at an all time high, and in conjunction with declining crude oil prices, profit margins are currently so low that there is little incentive for U.S. producers to continue current production. Even building these ethanol plants are becoming too costly as materials such as stainless steel to build the plants are increasing dramatically (due to the demand in building ethanol plants). One solution which ethanol producers are considering is halting production so corn prices can stablize and profit margins can once again be seen in the green. Hopefully we won’t need to halt production if the Democrats will be able to pass their $15 billion dollar House bill and add more subsidies on corn.
