U.S. ethanol profits stay weak on poor fuel demand

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U.S. ethanol profits stay weak on poor fuel demand Saturday, October 11, 2008
Reuters -- NEW YORK, Oct 10 (Reuters) - Average U.S. ethanol distillers profits rose a few pennies this week on softer corn prices but remained weak overall on poor motor fuel demand, analysts said on Friday. "Those companies that are able to keep costs under control continue to do okay. Those that can't are in a world of hurt," said Rick Kment, analyst at DTN in Nebraska. Average U.S. distillers were making about 10 to 20 cents per gallon for the week ending Thursday, analysts said. That was up about five to 10 cents from the previous week, but was no relief from the range seen in recent months. Poor profits amid volatile corn prices and soft motor fuel demand led to delays and other problems for producers this week. Aventine Renewable Energy Holdings Inc (AVR.N: Quote, Profile, Research, Stock Buzz) said this week it would delay the start-up of its Aurora West ethanol plant in Nebraska until the second quarter of next year. It had been scheduled to open in the first quarter.
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	Saturday, October 11, 2008 Reuters -- NEW YORK, Oct 10 (Reuters) - Average U.S. ethanol distillers profits rose a few pennies this week on softer corn prices but remained weak overall on poor motor fuel demand, analysts said on Friday. "Those companies that are able to keep costs under control continue to do okay. Those that can't are in a world of hurt," said Rick Kment, analyst at DTN in Nebraska. Average U.S. distillers were making about 10 to 20 cents per gallon for the week ending Thursday, analysts said. That was up about five to 10 cents from the previous week, but was no relief from the range seen in recent months. Poor profits amid volatile corn prices and soft motor fuel demand led to delays and other problems for producers this week. Aventine Renewable Energy Holdings Inc (AVR.N: Quote, Profile, Research, Stock Buzz) said this week it would delay the start-up of its Aurora West ethanol plant in Nebraska until the second quarter of next year. It had been scheduled to open in the first quarter. Visit Reuters for full article

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white_fang Rookie Author Dallas Posts:74 Points:72,530 Joined:Apr 2008	Message Posted: 10/12/2008 9:38:54 AM	Ignore white_fang Report Abuse
	hey, civicsrock. Ethanol is just another burnable hydrocarbon, like gasoline... but with lower thermal efficiency (less energy in it).. so your fuel milage will be worse. You gotta put more of it thru to get the same horsepower. Not a giant problem since we travel on part throttle most times. Doesn't work long term with rubber fuel lines, gaskets, etc. So the fuel system needs to be built w/proper materiels to hold up.. and a few Minor changes to metering/computer control. Basically easy to convert.. Also why around here, all our gasoline is 90% gas and 10% ethanol (which burns cleaner). Oh.. and Ethanol is produced, from plants.. not pulled outta the ground.
tomok Champion Author Portland Posts:9,620 Points:719,110 Joined:Aug 2006	Message Posted: 10/12/2008 9:34:34 AM	Ignore tomok Report Abuse
	The lower the price for crude oil - the less profit from ethanol.
mysub Champion Author Las Vegas Posts:1,037 Points:717,685 Joined:Apr 2006	Message Posted: 10/12/2008 9:32:48 AM	Ignore mysub Report Abuse
	Ethanol is not the answer
courier400 Champion Author Kansas Posts:6,831 Points:1,593,285 Joined:Mar 2004	Message Posted: 10/12/2008 9:21:14 AM	Ignore courier400 Report Abuse
	mckellyb, I would use it if it saved one american life in some old mid east sandbox, I dont have a car or truck it would run on, but my next one will. I like the fact its with in our borders and under (somewhat) our control.
cabdriver Champion Author Pennsylvania Posts:4,119 Points:994,350 Joined:May 2004	Message Posted: 10/12/2008 9:13:01 AM	Ignore cabdriver Report Abuse
	So when do we swap sugar for corn ethanol? When do we stop fooling around about the grid rebuild? When is our government going to invest as much in America as it does all these third world countries??? Yeah I've got a couple of questions for the candidates!
mckellyb Champion Author Las Vegas Posts:3,381 Points:641,705 Joined:Sep 2005	Message Posted: 10/12/2008 9:12:54 AM	Ignore mckellyb Report Abuse
	ethanol = scam The producers made a ton of money in tax breaks and the like, and consumers won't buy it, the smart ones, at least, as it's MUCH more expensive as a fuel, per mile. 30% less distance per gallon should, at the very least, equal a 30% savings at the pump. I've seen typically 10%, so you're paying 20% MORE for ethanol. Not a surprise it's not selling.
woodeye55 Champion Author Gary Posts:1,172 Points:427,150 Joined:Mar 2006	Message Posted: 10/12/2008 9:12:48 AM	Ignore woodeye55 Report Abuse
	Corn was made to eat and drink not drive.
DTown Rookie Author Pennsylvania Posts:2 Points:23,015 Joined:Sep 2005	Message Posted: 10/12/2008 9:07:30 AM	Ignore DTown Report Abuse
	What do you get when Iowa leads off the presidential campaign every four years? Horrible policy decisions like ethanol. ban. ethanol. today. [Edited by: DTown at 10/12/2008 10:07:48 AM EST]
higginslake All-Star Author Michigan Posts:652 Points:130,475 Joined:Feb 2008	Message Posted: 10/12/2008 9:01:01 AM	Ignore higginslake Report Abuse
	Let them eat corn!
Tnerbeel Veteran Author Houston Posts:471 Points:131,185 Joined:Mar 2007	Message Posted: 10/12/2008 8:59:54 AM	Ignore Tnerbeel Report Abuse
	I am no fan of Ethanol. It takes as much gasoline to produce as it replaces, fuel mileage is worse than with gas and it causes the price of corn, etc to rise.
imcruizn Champion Author Georgia Posts:2,141 Points:846,915 Joined:Oct 2005	Message Posted: 10/12/2008 8:57:51 AM	Ignore imcruizn Report Abuse
	lets find another source but lets do it now
mplato Champion Author Columbia Posts:1,292 Points:425,230 Joined:Jun 2004	Message Posted: 10/12/2008 8:57:34 AM	Ignore mplato Report Abuse
	first society in history to use food as a fuel....its not a good choice on our part.
ArboretumCop Champion Author Richmond Posts:1,267 Points:1,013,060 Joined:Sep 2005	Message Posted: 10/12/2008 8:54:10 AM	Ignore ArboretumCop Report Abuse
	Alrighty Now!
FairyGasMother Rookie Author Michigan Posts:11 Points:5,695 Joined:Oct 2008	Message Posted: 10/12/2008 8:53:31 AM	Ignore FairyGasMother Report Abuse
	All I have to say is "buy American". Keep the cash in American owned stations to help our economy.
civicsrock Sophomore Author Phoenix Posts:171 Points:69,040 Joined:Apr 2008	Message Posted: 10/12/2008 8:48:42 AM	Ignore civicsrock Report Abuse
	What exactly does ethanol do to gas?
domer2 All-Star Author Gary Posts:872 Points:379,000 Joined:May 2007	Message Posted: 10/12/2008 8:45:07 AM	Ignore domer2 Report Abuse
	interesting times.
southpaw33 Champion Author Orlando Posts:1,517 Points:437,295 Joined:Nov 2005	Message Posted: 10/12/2008 8:42:16 AM	Ignore southpaw33 Report Abuse
	ethanol is not the problem. also ethanol is not a bad product.
brutus Champion Author Alberta Posts:1,757 Points:937,580 Joined:Feb 2003	Message Posted: 10/12/2008 8:41:32 AM	Ignore brutus Report Abuse
	I wonder why.
eddyp94 All-Star Author Ontario Posts:901 Points:226,305 Joined:Mar 2008	Message Posted: 10/12/2008 8:40:33 AM	Ignore eddyp94 Report Abuse
	ethanol is not the way to go...
Chazzer Champion Author Nevada Posts:8,086 Points:1,730,660 Joined:May 2002	Message Posted: 10/12/2008 8:40:33 AM	Ignore Chazzer Report Abuse
	Here we go again, it always happens when a commodity gets overhyped and overproduced!
BigDogOH Veteran Author Cincinnati Posts:474 Points:225,095 Joined:Mar 2008	Message Posted: 10/12/2008 8:40:22 AM	Ignore BigDogOH Report Abuse
	Ethanol was a bad idea from the get go
my3sons Champion Author New York Posts:1,585 Points:855,820 Joined:Aug 2005	Message Posted: 10/12/2008 8:39:49 AM	Ignore my3sons Report Abuse
	too bad for you
taximom17 Rookie Author Toledo Posts:53 Points:19,575 Joined:Mar 2008	Message Posted: 10/12/2008 8:35:52 AM	Ignore taximom17 Report Abuse
	just say no ethanol
TerryLee Champion Author Ohio Posts:8,824 Points:1,617,850 Joined:Mar 2004	Message Posted: 10/12/2008 8:35:07 AM	Ignore TerryLee Report Abuse
	ethanol isn't the answer anyways
Terrapinone All-Star Author Baltimore Posts:676 Points:549,730 Joined:May 2004	Message Posted: 10/12/2008 8:34:27 AM	Ignore Terrapinone Report Abuse
	I agrreetahnol isn't the answer -- we need to develop alternative energy sources that will not leave us reliant on the near east
gr8oakOH All-Star Author Akron Posts:988 Points:257,090 Joined:Nov 2007	Message Posted: 10/12/2008 8:33:13 AM	Ignore gr8oakOH Report Abuse
	ethanol= very poor mgh
NJColt Champion Author New Jersey Posts:4,580 Points:1,025,980 Joined:Aug 2005	Message Posted: 10/12/2008 8:32:53 AM	Ignore NJColt Report Abuse
	Ethanol is garbage anyway, AND it spiked the price of corn, go figure!
lindact All-Star Author New Haven Posts:784 Points:171,670 Joined:May 2008	Message Posted: 10/12/2008 8:31:09 AM	Ignore lindact Report Abuse
	Ethanol isn't the answer. We need full effort into acceptable alternative fuel.
Gellin Champion Author Michigan Posts:1,472 Points:1,123,890 Joined:Apr 2005	Message Posted: 10/12/2008 8:30:59 AM	Ignore Gellin Report Abuse
	If we're going to use ethanl in our vehicles, let's make it from something other than the food we put on our table or in our livestock. How hard is that?
gasman50 Champion Author Portland Posts:1,314 Points:820,395 Joined:Nov 2005	Message Posted: 10/12/2008 8:29:47 AM	Ignore gasman50 Report Abuse
	Corn based ethanol is a joke and wouldn't exist as a motor fuel without HUGE taxpayer subsidies
jwells1954 All-Star Author Albuquerque Posts:553 Points:141,580 Joined:Nov 2007	Message Posted: 10/12/2008 8:27:59 AM	Ignore jwells1954 Report Abuse
	So, is the only use for ethanol mixing it with gas?
bumpygas Veteran Author Nebraska Posts:467 Points:331,385 Joined:Oct 2007	Message Posted: 10/12/2008 8:26:49 AM	Ignore bumpygas Report Abuse
	Ethanol is not the way to go when you consider alternative fuels.
caravanguy Rookie Author Milwaukee Posts:37 Points:176,940 Joined:Aug 2006	Message Posted: 10/12/2008 8:23:11 AM	Ignore caravanguy Report Abuse
	Corn baSEd ethanol, a waste of money and bad for engines. Full of subsidies(our tax money), protectionism (no cheap Brazillian sugar-baSEd allowed), and retailers that SEll it at such a high price(e-85 in SE Wisconsin) that it's not even competitive.
robertsss All-Star Author Hamilton Posts:761 Points:92,705 Joined:Jun 2008	Message Posted: 10/12/2008 8:21:35 AM	Ignore robertsss Report Abuse
	The need for alternative sources is still of utmost importance. I hope the government and people don't lose sight of that or we will be back to where we started a few months ago.
cableman31 All-Star Author New York Posts:768 Points:429,775 Joined:May 2004	Message Posted: 10/12/2008 8:20:01 AM	Ignore cableman31 Report Abuse
	There just aren't that many ethanol vehicles out there yet. If these people thought many people were going to run out and buy new cars, they better open their eyes and look at what is going on. Most families can't afford to take a family out for dinner much less buy a new car.
ladyjj Champion Author Tennessee Posts:1,455 Points:161,295 Joined:Apr 2008	Message Posted: 10/12/2008 8:17:08 AM	Ignore ladyjj Report Abuse
	Why the delay they want the fuel prices to go up again!
eagleeye2008 All-Star Author Wisconsin Posts:511 Points:110,065 Joined:Jul 2008	Message Posted: 10/12/2008 8:16:35 AM	Ignore eagleeye2008 Report Abuse
	YES!!! CONSERVATION WILL CAUSE LESS DEMAND.remenber--YOU CAN'T HAVE IT BOTH WAYS !!
coolpado All-Star Author Virginia Posts:872 Points:178,545 Joined:May 2008	Message Posted: 10/12/2008 8:13:24 AM	Ignore coolpado Report Abuse
	So?
guarddog Rookie Author Illinois Posts:64 Points:933,070 Joined:Jul 2005	Message Posted: 10/12/2008 8:12:03 AM	Ignore guarddog Report Abuse
	Make ethanol from waste materials. it can be done. Its all about politics.
GasaHawg Veteran Author Texas Posts:477 Points:95,555 Joined:Nov 2005	Message Posted: 10/12/2008 8:10:51 AM	Ignore GasaHawg Report Abuse
	We need this alternative to keep fuel prices in check. No more mega million bonuses and retirement for oil CEO's.
2Tall Champion Author Maryland Posts:4,617 Points:1,357,855 Joined:Jun 2004	Message Posted: 10/12/2008 8:10:05 AM	Ignore 2Tall Report Abuse
	Good
H82Bgouged Champion Author Indiana Posts:7,260 Points:1,514,335 Joined:Aug 2004	Message Posted: 10/12/2008 8:07:29 AM	Ignore H82Bgouged Report Abuse
	I agree with suj
suj All-Star Author Wichita Posts:522 Points:104,875 Joined:Aug 2008	Message Posted: 10/12/2008 8:05:50 AM	Ignore suj Report Abuse
	so? we really shouldn't be making fuel out of food anyway.
Marson Champion Author Scranton Posts:1,133 Points:503,015 Joined:Oct 2006	Message Posted: 10/12/2008 8:05:08 AM	Ignore Marson Report Abuse
	OK
billabonk16 Veteran Author Pennsylvania Posts:495 Points:125,930 Joined:Jul 2005	Message Posted: 10/12/2008 8:03:36 AM	Ignore billabonk16 Report Abuse
	booo
hank1326 All-Star Author Los Angeles Posts:505 Points:126,730 Joined:Jun 2008	Message Posted: 10/12/2008 8:03:35 AM	Ignore hank1326 Report Abuse
	Keep on the research to find other fuel alternatives. Meanwhile, keep on conserving.
gassygrandpa Champion Author Detroit Posts:3,414 Points:893,345 Joined:Oct 2005	Message Posted: 10/12/2008 8:01:46 AM	Ignore gassygrandpa Report Abuse
	Despite all the ads, people still do not want ethanol!
tazdriver Champion Author Alabama Posts:2,313 Points:571,510 Joined:Jan 2007	Message Posted: 10/12/2008 7:58:49 AM	Ignore tazdriver Report Abuse
	May be too little too late.
repeater1 Veteran Author Kansas Posts:400 Points:797,780 Joined:Oct 2005	Message Posted: 10/12/2008 7:58:24 AM	Ignore repeater1 Report Abuse
	Ethanol plants are struggling. One of them just went belly up in Kansas
ardmoretoday All-Star Author Oklahoma Posts:874 Points:458,615 Joined:May 2007	Message Posted: 10/12/2008 7:58:09 AM	Ignore ardmoretoday Report Abuse
	No brainer