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Soaring Corn Prices Affecting Ethanol Companies' Profit Margins

Friday, July 27, 2012 8:20 AM

http://media.marketwire.com/attachments/201203/31465_38273_FiveStar_logo-colour.jpghttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=913830&ProfileId=051205&sourceType=1

NEW YORK, NY -- (Marketwire) -- 07/27/12 -- The Ethanol Industry has struggled in recent weeks as the worst drought in 25 years have sent corn prices skyrocketing. Since the middle of June corn prices have soared over 60 percent, while ethanol prices have increased just 33 percent over the same period. Five Star Equities examines the outlook for companies in the Ethanol Industry and provides equity research on Archer Daniels Midland Company (NYSE: ADM) and Cosan Ltd. (NYSE: CZZ).

Access to the full company reports can be found at:

www.FiveStarEquities.com/ADM
www.FiveStarEquities.com/CZZ

The U.S. Energy Information Administration on Wednesday reported that ethanol production fell to its lowest level in two years. Despite production rates being at record lows, stockpiles of ethanol have risen to 19.6 million barrels (823 million gallons). "Ethanol has seen a huge drop in production, but yet stocks are steady," said Mike Blackford, an INTL FCStone consultant.

According to data collected from Bloomberg based on the September contracts for corn and ethanol, companies are losing 35 cents on each gallon of ethanol produced.

Five Star Equities releases regular market updates on the Ethanol Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.

Archer Daniels Midland Company is one of the largest agricultural processors in the world. ADM delivers clean-burning ethanol to refiners through an expansive network of trucks, railcars, barges and terminals. Their customers -- primarily large energy companies -- blend these products with unleaded gasoline in various concentrations to increase the fuel's octane rating and help reduce harmful emissions.

Cosan is Brazil's largest renewable energy company. Through Raízen, a joint venture between Cosan and Shell created in June of 2011, the company produces more than 2.2 billion liters of ethanol per year to supply both domestic and international markets.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: www.FiveStarEquities.com/disclaimer

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(Source: Market Wire )
(Source: Quotemedia)

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