Distilling the ethanol story

By Steven Graubart

The “new gasoline” is changing the grain market — and impacting the stock market, too. Traders in both markets need to understand the ethanol dynamic.

The development of the ethanol market in recent years has had a dramatic effect on farmers’ planting priorities, fanning grain prices (beyond corn, from which ethanol is derived) to record or near-record levels, and creating opportunities and risks in the stocks of many ethanol producing companies.



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