Alto Ingredients Inc (ALTO)

[Rule_62]

The negative pressure might be in large part due to what's driving ethanol prices. Check out this article about Andersons ethanol operations. The current situation is impacting Midwest and Eastern ethanol producers in a lot different way. They can't get rail cars to ship ethanol. The market as a whole doesn't recognize that a producer like PEIX doesn't ship their ethanol by rail. It's all delivered by truck to the local market.

Rail threat

However, the group warned too that the US rail hiccups could hit its grain and ethanol businesses, which are bigger earners, and its fertilizer sales operations too.

"It should be noted that poor railroad service could impact the company in the fourth quarter," Mr Anderson told investors.

"Both grain and ethanol groups rely on outbound rail service to turn their inventory, which enables them to effectively serve the customers.

"Further, the plant nutrient group relies on inbound rail to ensure nutrients are available to meet customer needs."

US rail, ethanol fears send Andersons plunging

I've come across a couple other articles like this one about Midwest/Eastern producers, where they are running out of storage capacity and facing having shut down because they can't get their ethanol to the market.