29 August 2013

Cheap Corn Deters Buyers in U.S. Sugar-for-Ethanol Plan

Even with limited participation initiative may push prices up enough to avoid some forfeitures

A glut of corn has damped interest by biofuel makers in a U.S. government program to sell surplus sugar for ethanol, potentially decreasing its effectiveness in propping up sugar prices.

With the U.S. harvest of corn, the nation’s biggest crop and the source of most of its ethanol, expected to set a record this year, ethanol producers don’t see sugar as a competitive substitute, said Todd Becker, chief executive officer of the Omaha, Nebraska-based Green Plains Renewable Energy Inc. (GPRE), the fourth-largest maker of ethanol in the U.S., which decided not to participate.

… Full text: www.bloomberg.com/news/2013-08-29/cheap-corn-deters-buyers-in-u-s-sugar-for-ethanol-plan.html

Tags: sweetener, biofuel, feedstock flexibility, record surplus, raw sugar, sugar prices, monitor bidding, U.S. energy law, Renewable Fuels Standard

Source: Bloomberg, 2013-08-29.

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