Rail Delays Lead to Soaring Ethanol Prices
April ethanol prices rose to a level not seen since July of 2011 on the Chicago Board of Trade early this week. A lack of railcars - caused by the harsh winter conditions - is preventing the fuel from reaching refiners. The inability to move the ethanol has led producers to lower production and reduce supplies. According to analysts - ethanol plants that typically see trains return within a matter of weeks are now waiting months. Earlier this month - BNSF Railroad said it was experiencing delays of at least 15 days. Rail shipping conditions are expected to improve with the return of warmer weather. Industry officials say ethanol production will return to levels necessary to ensure adequate supplies.
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