Citigroup reports ethanol margins have risen 750 percent since September; ethanol glut easing

Citigroup reported that US ethanol margins rose 2 cents in December to 30 cents, up 26 cents since September. Citi analyst David Driscoll said that ethanol supply in September was 26 days, below the industry average of 32 days, and that the minor shortage was helping to increase prices.

The USDA Agricultural Marketing Service reported that the average rack price of ethanol in October fell to 45 cents below the comparable price for gasoline.

In August, the ethanol rack price had been 10 cents higher than conventional gasoline. However, the Service reported that, by November, ethanol prices had recovered to $1.87, up from a low of $1.49 in September.

In August 2007, the average rack price of ethanol in Omaha, Nebraska was $.10 per gallon higher than the average rack price of unleaded gasoline.

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