Biofuels Stock and Financial Outlook for September 24: Stocks expected to open higher as further interest rate cuts considered
Stocks are expected to open higher Monday after futures prices rose for all the major indices roughly 0.3 percent overnight. Biofuel stocks have a more pessimistic outlook as editorial against ethanol production increases and new plant construction, as well as continued pressure on ethanol prices, create conditions for a possible industry shakeout.
The Biofuels Digest Indexâ„¢ (BDI), a basket of 21 major public biofuel stocks, rose 1.12% to 99.98 as biofuel stocks rose in line with the general market despite analyst pessimism about the prospects for corn ethanol.
The Biofuels Digest Indexâ„¢ (BDI), a basket of 21 major public biofuel stocks, rose 1.12% to 99.98 as biofuel stocks rose in line with the general market despite analyst pessimism about the prospects for corn ethanol.
Among biofuel stocks, losers led gainers by 10 to 9, but Aventine (AVR), VeraSun (VSE) Archer-Daniels-Midland (ADM) all rose around 1% today despite sector downgrades based on slashed third quarter analyst profit estimates. Brazilian energy firm Cosan denied that it was in talks to be acquired by ADM which is a minority shareholder.
Microcaps recorded a mixture of losses and gains, with Xethanol leading the winners, up 4.51% to $0.7525, and MGP Ingredients heading the losers, down 4.92% to $12.18.
In the broader markets, the Dow Jones industrials gained 53.49 points to close at 13,820.19, the S&P 500 rose 7.00 to 1525.75, and the Nasdaq rose 16.93 points to 2671.22.
