The last six weeks have seen the share prices of U.S. ethanol producers such as The Andersons, Green Plains, Inc., and REX American Resources outperform the broader S&P 500 index; only the heavily-indebted Pacific Ethanol (PEIX) has missed out on the rally, reports Seeking Alpha.
While the share price of Green Plains, Inc. has only moved into positive territory on a YTD basis and remains below its May 2019 highs, that of REX American Resources is trading at its highest price of the year.
This marks a major reversal in a quarter that is usually characterized by declining production margins following the end of the summer driving season and uncertainty over the ongoing corn harvest.
The recent corn ethanol share price rally has occurred as production margins have improved to levels not seen in the last 18 months.
