Husky Energy said that rising wheat prices had forced the company to switch feedstock at its Minnedosa plant in western Manitoba to corn. The company said that corn now accounted for up up to 75 percent of total feedstock, and that it would continue to secure up to 80 percent of its feedstock in Manitoba.
Husky had said earlier in the year that it would abandon wheat entirely as an ethanol feedstock, and offered $6 per bushel for spring corn deliveries, following the run-up in wheat prices. The rapid increase in wheat prices has prompted farmers to withhold wheat from the market in the hope of achieving higher prices at a later date.
Husky opened the34 Mgy wheat and corn ethanol plant in Minnedosa, Manitoba in March. The plant replaces an older 4 Mgy facility, and will also produce 126,000 tonnes of dried distillers grains for the feedstock market.
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