Alto Ingredients Inc (ALTO)

[Rule_62]

Some timely comments from Rick Kment @ DTN

Spot ethanol prices shot higher once again with prices in most regional hubs posting double-digit price surges. The full range of prices ranged from 7 cents higher to 19 cents per gallon, while most locations posted prices 17 to 19 cents per gallon higher.

The concern about gaining access to spot product is sparking widespread market support and could continue through the early holiday season.

Additional concerns about recent snow slowing progress of trains in some areas may add even more concern to ethanol buyers about meeting needed supplies.

and on the Neeley model:

Ethanol plant profitability bounced higher following the higher ethanol rack prices at the end of the week. This helped to push net margins to 63.1 cents per gallon as traders look at moderating corn prices and still hot ethanol markets pushing buyer interest higher. The hypothetical plant is used to measure how changes in commodity markets might affect actual plant margins.

If the NorCal price pushed 19 cents higher today, PEIX net margins should be right in that same range or even slightly higher. A 19 cent gain today would push the weekly gross margin to above $1.40