LINCOLN, Neb. (AP) — Valero Energy has temporarily halted production at its ethanol plant in Albion in eastern Nebraska because shrinking margins, due in part to rising corn prices.
The Lincoln Journal Star (http://bit.ly/MMa1GT) says company spokesman Bill Day says a healthy supply of ethanol also played a role in the decision. He says it's more economical to shut down than to lose money.
Corn prices are on the rise on worries that a hot, dry summer could burden crops.
Day says Valero expects to restart production sometime before the fall harvest, and there are no plans to lay off any workers.
Valero is the second Nebraska ethanol plant to temporarily stop production. NEDAK Ethanol shut down its plant in Atkinson last week to conduct regular maintenance and monitor the corn and ethanol markets.