Pharos-Tribune

Local News

February 19, 2013

High corn prices hit The Andersons

Clymers plant running as usual, but company’s ethanol group posts 2012 loss

While abnormally high corn prices have squeezed profit margins at The Andersons, which operates an ethanol plant in the Clymers area, a company official says the plant is expected to operate normally for the next few weeks.

The Andersons’ ethanol group this month reported an operating loss of $3.7 million in 2012, far lower than the group’s $23.3 million income in 2011. Two other groups had reported record incomes, but a press release from the company attributed the ethanol group’s loss to weaker demand for gas and the high costs of corn after last year’s drought.

“Current margins are not good, but they, at least in our case, don’t suggest that we cease production,” said Neill McKinstray, president of The Andersons’ ethanol group. That means operations at the Clymers plant “ought to be fairly normal in the next month.”

Two Indiana ethanol plants have stopped producing since summer, according to Associated Press reports. The former New Energy Corp. plant in South Bend was in bankruptcy proceedings and recently sold to a joint venture, reports the Indianapolis Business Journal. The AP reports that the Valero plant in North Linden has been idle since June.

But it’s not merely because of a corn shortage, said McKinstray. There’s corn, but it’s expensive.

“There is still corn available at this moment,” McKinstray said. In fact, since corn’s harvest year isn’t even halfway over yet, there is likely to be plenty of corn for some time yet, and the corn market is expected to adjust for whatever shortage there will be later in the summer.

Corn prices, though high, have also been falling slightly. However, the price of corn is still “orders of magnitude” above what it was just a few years ago, McKinstray said, and combined with lackluster demand for ethanol, it’s pinching the ethanol group’s bottom line.

Even with more than 20 ethanol plants sitting idle, McKinstray said there was still “plenty of ethanol to satisfy the required blending obligations” in automotive gasoline.

Having several plants idle is getting rid of some of the market’s excess ethanol supply and improving the demand a bit, he said, but “frankly the competing impact of the tight corn supply is negating most of that.”

Local farmers haven’t had to bow out of their contractual corn obligations because of the drought, he said.

“So long as I had corn,” McKinstray said, the drought “didn’t dramatically influence the gallons. What it did influence was the profitability.”

And that’s “dramatically reduced.”

“We’re doing what we can to try to respond to that, as most prudent businesses would,” he added. “But there’s only so much we can do.”

Sarah Einselen is news editor for the Pharos-Tribune. She can be reached at sarah.einselen@pharostribune.com or 574-732-5151.

For more on this story and other local news, subscribe to The Pharos-Tribune eEdition, or our print edition

1
Text Only | Photo Reprints
Local News
  • Fatal wreck Monticello woman killed in overnight wreck near 31-931 split

    A Monticello woman was killed late Monday night in an automobile accident involving a car and semi-trailer truck in the northbound lands of U.S. 31 near the junction with U.S. 931.

    July 29, 2014 1 Photo

  • SPT - PT072914 Colts-pic [Duplicate] QB Luck making progress ANDERSON — Wind chill estimates put the temperature at 59 degrees Monday morning at Anderson University.During one stretch of his fifth training camp practice of the year, however, it likely felt much colder to Andrew Luck.The Indianapolis Colts quar

    July 29, 2014 1 Photo

  • District's tire collection effort still going strong If you’ve got old tires, the county still wants them.The Cass County Solid Waste District extended the county-wide tire collection program Monday for the next few weeks — or until the new semi-trailer is full at least.District director Bob Ehle has b

    July 29, 2014

  • Permanent road closure has Miami Co. residents worried PERU — Residents who live near a safety-flare company that’s expanding north of Peru spoke out against a proposal to permanently close a section of county road that runs through the company’s facilities.Orion Safety Products, located at 3157 N. 500 W

    July 29, 2014

  • NWS-PT072914 Legal Services3.jpg Church opens nonprofit immigration clinic She’s worried about her oldest daughter, now almost 18, who’s residing with strangers in Honduras.She talks to her daughter almost daily, she said, but the last time she saw her in person was when her daughter was 7 years old.That’s because she’s und

    July 29, 2014 3 Photos

  • Board approves gravel pit in Walton Homeowners in the area of a proposed gravel pit and other interested Cass County residents packed the commissioners hearing room Monday night to voice their concerns over the pit that local firm Engineering Aggregates Corp. wants to dig, only to have

    July 28, 2014

  • Cass Co. deputies assist in high-speed pursuit

    An Illinois man driving at speeds of 120 mph led officers from three counties on a high-speed chase Sunday before crashing into a utility pole.

    July 28, 2014

  • Illinois man leads police on high-speed chase PERU — An Illinois man driving at speeds of 120 mph led officers from three counties on a high-speed chase Sunday before crashing into a utility pole. Peru police say Isaac K. Hoefling, 31, Lamont, Illinois, was first pulled over by Howard County dep

    July 28, 2014

  • Teachers worry about revamped ISTEP test INDIANAPOLIS (AP) — Indiana teachers heading back to classrooms starting this week are facing the daunting task of preparing students for a standardized test that's been retooled for the third time since 2009. Some teachers and district administrator

    July 28, 2014

  • Police Blotter: July 28, 2014 Have a tip? Anyone with information on a crime is encouraged to call Crime Stoppers at 800-222-TIPS. Information leading to an arrest or conviction could lead to a reward of up to $1,000.

    July 28, 2014

Featured Ads
More pharostribune.com
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
AP Video
Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Poll

Should grocery and convenience stores be allowed to sell cold beer?

Yes
No
Unsure
     View Results
eEdition