March 1, 2007

US Grain Processing Corp to hike ethanol price

US ethanol producer, Grain Processing Corporation (GPC) is eyeing 20 to 25 cents per gallon increase in industrial ethanol, effective April 1, a company source said February 27.

The company was bullish on pricing from a combination of firm feedstock corn prices and severe weather in the Midwest that limited the amount of corn deliveries into plants.

The price of feedstock corn, which has been above US$4 per bushel, was said by participants to be a significant factor in any hike in prices in industrial and beverage-grade ethanol, according to GPC.

In addition to feedstock pressures, demand in both the beverage and industrial-grade sectors was also due to pick up between February and March when "the beverage market for bottling and the solvents side" increases, GPC said.

GPC runs an alcohol production unit in Muscatine, Iowa; and Washington, Indiana.