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SC Iowa |
Fringe area plants, also called "destination plants" because they are not sitting in the midst of the midwest corn supply, are likely to see margins shrink or go negative at a faster pace than those in the sweet spot of corn supply.....
I am sure there are many reasons for the closure, but it should be noted that several plants that fall into that category have come back on-line in the past 12-18 months.....
It also should be noted that RBOB gasoline is inverted by 18 cents per gallon between Sept and Dec NYMEX contracts
while corn is in a carry......that is NOT a recipe for capturing positive margins in a biz that is scraping by.....
Ray J
Wyoming Ethanol to suspend operations
Posted: Tuesday, Aug 25th, 2015
BY: Bud Patterson
TORRINGTON – Wyoming’s only ethanol plant will soon cease operations.
Terry Oldfield, chief executive officer for Renova Energy, parent company of Wyoming Ethanol, confirmed Monday that Wyoming Ethanol will be going into an “indefinite suspension of operations.”
“We will be finishing corn receipts this week and will need to crush the corn the week after,” Oldfield said, explaining when the suspension would begin. “Operations should be completed by the end of next week.”
Wyoming has subsidized ethanol production since 1995 and the Wyoming Legislature extended the tax credit through 2022, until it repealed its decision in 2013, ending the tax credit in 2015.
However, Oldfield explained the loss of the tax credit was not the deciding factor in closing.
“I won’t say that losing the tax credit didn’t hurt us,” he explained, “but we could have survived if petroleum prices hadn’t also dropped.
“With what the stock market did Friday and today (dropping over 1,000 points), it took oil prices with it, to $38.25 a barrel. We don’t have the capacity to compete with those prices.”
According to Oldfield, Renova is privately held by four people, who make up its upper management, and Wyoming Ethanol is its only business asset.
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Torrington, WY ethanol plant going dark..
