There’s an overview of the US market for ethanol, the state of plant building and possible directions for the corn price, over at the Agrilife Extension of the Texas A&M University website.
The credit crunch might have been a good thing for the profitability of the US ethanol industry according to Bill Tierney, former Kansas State University grain marketingeconomist and former head of the U.S. Department of Agriculture wheatand feedgrains forecasting division in Washington, D.C.
“In early August 2007, the industry was well onits way to overbuilding, much as the U.S. biodiesel industry alreadyhas,” Tierney said.
The credit crisis and declining ethanol margins dried up financing for 11 billion gallons of “probable” projects, he said.
It is an ill wind that blows no good.
Hattip to Ron Steenblik and his del.icio.us page