Alto Ingredients Inc (ALTO)

[Rule_62]

The price for corn at Turlock was quoted as $8.90 for the past week. The USDA also reported that the most recent spot price farmers were receiving at Glenn, CA was $7.85 (delivered). That's approx 2 hours north of Stockton. Works out to $4.21/bushel. That's considerably cheaper than any other price PEIX would be paying for corn right now. If they are accessing sufficient local corn at this point, it would help the margins at Stockton and Madera considerably.

Using that price plus $0.10 for delivery (I don't have an actual delivery cost) and plugging it into the PEIX default formula, based on yesterday's LA ethanol price,the margin would look something like

$1.82 -($4.31 *(1-0.3)/2.74 = approx $0.72/gal. That's about 9 cents better than yesterday's margin using the CBOT nearby futures price.

I wonder how much local corn they can access this time of year.