As ethanol production's demand for corn has driven corn prices upward, those same ethanol producers have begun to feel the effects of the climb in prices.
Archer Daniels Midland, the largest
However, analysts say most ethanol plants would not face losses unless corn prices were much higher. For that to happen, Ag Resource Co. president Dan Basse tells the Associated Press that, based on current costs and an ethanol price of $2.20 a gallon, corn would have to reach $4.80 a bushel.
Meanwhile, an April 27 Lehman Brothers report has ethanol demand lagging behind supply in the second half of 2007, with a projected supply of 445,000 barrels a day but a demand of 420,000 barrels. The report partly blames the lack of infrastructure for transporting ethanol to the pump in the