Average ethanol price
Pacific Ethanol (PEIX) shipments have grown by 44% over the past 12 months. But the selling prices of ethanol have fallen over the same period.
During the past 12 months, Pacific Ethanol’s average selling prices for ethanol has fallen by as much as 10%. Ethanol prices are impacted by demand-supply dynamics, as the case for all commodities. But recently, the collapse of oil prices has caused prices of ethanol (QCLN) to decline.
Over this period, the prices of corn have fallen, on average, by 14%, according to Pacific Ethanol. If you are tracking corn-based ethanol producers, it’s critical to track prices of corn. (For more on this, read the latest Market Realist report in the series Cream of the Crop? Analyzing Corn, Soybean, and Wheat Prices.)
Companies such as Pacific Ethanol, Archer Daniels Midland (ADM), Renewable Energy (REGI), and Green Plains (GPRE) are better able to sustain the impact of declining prices through increases in sales volumes. Despite Pacific ethanol’s declining prices, the company’s shipment volume grew 44%.
Results from sales
The rise in sales volumes caused Pacific Ethanol sales to grow by as much as 46% over the same period. Continue to the next part for a look at how the company’s margins performed over this period—and what analysts are expecting for the next 12 months.