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EASTERN CORN BELT ETHANOL PLANTS MAY HAVE TO SHUTDOWN
Jun. 3, 2011
Source: The Brock Report
Ethanol plants in the eastern Corn Belt face the very real possibility they will have no choice but to either slow operations or temporarily shutdown late this summer. Why? Because there simply won't be enough 2010-crop corn available in that part of the country to satisfy all users and it's easier for an ethanol plant to temporarily reduce production than livestock operations.
This is an old-crop supply problem that will probably be made worse by severe planting delays in Ohio and surrounding states.
USDA's mid-year grain stocks estimates indicated the eastern Corn Belt would become a corn deficit region before the end of the marketing year, which means bushels would need to be shipped in from other states (most likely Illinois) to maintain an adequate supply.
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