Alto Ingredients Inc (ALTO)

[Rule_62]

Substantial jump in the California ethanol price today, from a bid/ask of $2.02/$2.04 yesterday to $2.11/$2.14 today. That's based on the daily numbers put out by Progressive Fuels. The last time the California price was at this level was on September 15th.

The PEIX production margin responded accordingly, and now sits @ $0.852/gal. This is the highest it's been since September 15th, when it was $0.952. Corn was considerably lower then at $3.43, compared to today's $3.70

Somehow, I don't think corn is going to stay this high much longer. The harvest is now in high gear. A number of articles have stated that farmers have been holding back on selling, but as their on-farm storage fills, they're going to have no choice but to sell. With a record harvest out there (with numbers that just keep getting bigger), sooner or later there's going to be a flood of corn on the market.