Shares of companies related with ethanol have been moving higher recently as the price of corn used to make the alternative fuel has gone down.
In recent trading, corn traded at $3.88 a bushed on the Chicago Board of Trade. Analysts predict an more declining corn prices, especially once the U.S. Department of Agriculture’s releases their report on spring planting today.
It is expected that there could be a large increase in corn acreage which would add to the future supply of corn.
Citigroup’s analyst David Driscoll has spoken recently on this, and has also said that higher ethanol prices and lower corn costs would create better margins for the producers of ethanol.
Stocks that could be impacted positively by the report include the Blue Dolphin Energy Company (NASDAQ: BDCO), Xethanol Corp. (AMEX: XNL), Pacific Ethanol Inc. (NASDAQ: PEIX) and Archer Daniels Midland Company (NYSE: ADM).
One thought to “Ethanol Stocks”
Ethanol is a phenomenon that is beginning to take root in the U.S.A.
Hopefully more people will invest in companies producing and researching Cellulosic Ethanol production.