Let's see how VeraSun faired with its first quarter corn costs:
The average price from January 2nd to March 31st for VeraSun's three plants - Aurora (120), Fort Dodge (110), and Charles City (110) - was a horrific $4.84 per bushel. The Linden (110) and Albion (110) plants are not accounted for as their daily corn bids are not available. In its previous quarters, VeraSun has paid an average of $3.61 per bushel (fourth), $3.32 per bushel (third), $3.62 per bushel (second), and $4.05 per bushel (first).
If this isn't bad enough, the USDA stated today that farmers are expected to plant 86 million acres of corn this year, down 8% from 93.6 million in 2007. The cut in supply only means that corn prices will go even higher. May corn on the CBOT jumped 6.6 cents today to $5.67 per bushel.
Just another bad day in the ethanol industry!