Graph Of The Day: Cornfield vs. Oilfield

By: Dian L. Chu

According to CME Group Ethanol Outlook Report dated February 07, 2011, corn prices have rallied by 90% whereas ethanol prices have rallied by only 55% over the past 7 months. That has resulted in a negative ethanol-corn crush margin of -1 cent per gallon from the 20 cent profit last July. (See Chart) The spread between ethanol and raw sugar is even worse at close to -$3.Read more