Financial analysts are reconsidering the prospects of corn-based ethanol makers in light of rising corn prices.
Corn serves as the primary source of ethanol in the United States where federal regulations provide subsidies to encourage use of biofuels. And the growing interest in alternatives to gasoline has spurred an investment boom in biofuels production.
But as agricultural companies report earnings and cite higher corn prices, analysts are voicing concerns over overheated expectations around corn-based ethanol.
In a report titled "The Bloom is off Ethanol" covering VeraSun Energy, WR Hambrecht on Tuesday said that "the pricing environment is … Read more