Valero Honors Portion of Corn Contracts for Ethanol

domesticfuel.com
Posted by Cindy Zimmerman – May 3rd, 2009

Corn farmers who had contracts to provide corn for ethanol plants owned by bankrupt VeraSun are being offered a deal by Valero Energy, which purchased some of the company’s assets.

Valero officials say they are offering farmers with forward contracts a bonus of 40 percent of the difference between the cash price for corn and the futures price on the contract. Valero spokesman Bill Day says most suppliers have accepted the deal. We said when we bought those plants we were looking forward to having a good working relationship with local suppliers. This is what we meant by that. It’s good for us, it locks in supply. It’s good for them as well,” said Day. Valero agreed to purchase seven ethanol facilities and have closed the deal on six of them. Four of the plants are in currently operating.

Read the full story