Storm Lake Pilot Tribune
VeraSun CEO Don Endres said the company does not expect to scale back corn buying. It plans to be able to make payroll and pay off goods and servcices bills owed to those doing business with the plants.
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In 2006, VeraSun shares made a powerful debut at more than $30 a share as ethanol was touted as a solution to the oil crisis. After being de-listed by the New York Stock Exchange, shares were reportedly going for 28 cents each early this week.
Due in part to the ethanol industry's own role in raising demand for corn, and early-season flooding that caused concern for corn supply, VeraSun locked in crop in the midst of the record run-up in corn prices. Corn in June was selling for about $8 a bushel, almost twice the current value, and many farmers sold their anticipated crops ahead to take advantage. VeraSun reportedly paid futures between $6.75 and $7, triggering a net loss for their third quarter earnings.
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