Ethanol, Corn, Crude

Price relationships, profitability
By Susanne Retka Schill | November 15, 2010
The corn market's up, but how much that matters depends on other markets. The relationship between ethanol prices, corn prices and crude oil has evolved and shifted over time. In 2008, ethanol and corn were following crude oil. In 2009, that relationship weakened. This past year, ethanol and corn prices have dipped and risen together while crude oil has stayed relatively flat. The purple line on the bottom of the chart shows how these relationships play out in the profitability of a hypothetical ethanol plant modeled by the Ag Marketing Resource Center at Iowa State University.

This chart is built from several others updated regularly by the Ag Marketing Resource Center.

The converion factor used for Com/bushel to Corn/gallon is 2.8.