Alto Ingredients Inc (ALTO)

[kel3]

PEIXs Ability/Means to Hedge For Q3


Plants Capacity 160 mln Gal Per Year



Per Qaurter 40 mln Gal



40 mln Divided by 2.8 Gal per Bushel = 14.28 mln Bushels



5000 Bushels x 2800 Contracts = 14,000,000 Bushels



Cost to Hedge a 5,000 Bushel Contract $1,800.00



$1,800.00 x 2800 Contracts = $5.04 mln Dollars



$5.04 mln Dollars Buys Enough Corn Contracts for the Whole Qaurter

If They Had to Pay Maint. Cost On 1/2 for Holding It to Long


It Would be Another $2.5 mln Dollars




#7.54 Mln Dollars for A Whole Qaurters Corn to Hedge



Pacific Ag a Wholley Owned Subsidiary of Pacific Ethanol and handles Corn


the borrowing base of the credit facility includes the accounts of Pacific Ag.

http://finance.yahoo.com/news/pacific-ethanol-inc-extends-increases-123000053.html



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