30 Mgy Pine Lake Processors ethanol plant in Iowa shuts down over corn hedging troubles

In Iowa, the 30 Mgy Pine Lake Corn Processors ethanol plant in Steamboat Rock shut down production after the plant ran out of cash due to locking into high corn prices earlier in  the year. During the summer, corn was costing up to $8 per bushel and ethanol was wholesaling at nearly $3 per gallon. Following the commodities collapse, ethanol is marketing at $1.50 per gallon while corn is selling in the $3.50 range, Pine Lake said that the company did not contract for enough ethanol sales at the summer’s high prices to make up for the high price of corn it is committed to.

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