Citigroup says ethanol margins back on track after recent price surge to $2.31 per gallon

Citigroup says that, with recent rises in ethanol prices, “We firmly believe the new energy bill will serve as a significant catalyst to the ethanol industry, as the higher mandated ethanol levels stipulated by the new renewable fuel standard should serve to bring ethanol supply and demand back into balance, thereby strengthening ethanol’s pricing fundamentals.”

The report cites the rise in ethanol prices, which have recovered to $2.31 per gallon, compared to $2.45 per gallon for gasoline.

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