HAVE A GREAT MONDAY READERS!

I've seen a few articles start appearing in the past few weeks indicating that the ethanol subsidy loss is starting to show a noteably negative impact on the ethanol manufacturing industry. I expected this might happen. Will remain to be seen if it continues to have a negative impact.

Here's one of the articles on the subject (more to come):

Without government aid, ethanol industry falters

Minneapolis / St. Paul Business Journal by Mark Reilly, Managing Editor

Date: Tuesday, February 28, 2012, 7:15am CST - Last Modified: Tuesday, February 28, 2012, 7:34am CST

Managing Editor -Minneapolis / St. Paul Business Journal

Turns out ethanol producers may really have needed that federal subsidy after all.

Since a federal 45-cent-per gallon credit for ethanol expired Dec. 31, the industry has struggled, Minnesota Public Radio reports. Profit margins at Al-Corn Clean Fuel in Claremont, Minn., one of the many ethanol producers in the state, have vanished.

Part of the problem is the after-effects of the subsidy. Since buyers knew the credit was going away, they ramped up purchases in late 2011. That caused a demand spike, which led to more production. Now the companies that produced all that fuel, but didn't sell it before the deadline, are left with a glut.

Some ethanol producers say they'll cut back on production and they hope that higher fuel demand in the summer will help.

Mark Reilly manages daily and weekly coverage at the Business Journal newsroom.

"Pete" Landry.........comments welcome...........at ............way2gopete@yahoo.com