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Citigroup Says Energy Bill Will Raise Ethanol Prices

Citigroup has released a report that claims the energy bill passed early in December by Congress will raise ethanol prices in the upcoming year.

MarketWatch quotes a Citigroup report in which their analysts claim, “We firmly believe the new energy bill will serve as a significant catalyst to the ethanol industry, as the higher mandated ethanol levels stipulated by the new renewable fuel standard should serve to bring ethanol supply and demand back into balance, thereby strengthening ethanol’s pricing fundamentals.”

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