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Price of corn, effects of drought cause two Indiana ethanol plants to idle

Two of Indiana’s ethanol plants have temporarily halted production because of high corn prices.

The shutdown of the New Energy Corporation facility in South Bend and the Valero Energy plant in the town of Linden has reduced statewide output by nearly 600,000 gallons per day. 

Valero spokesperson Bill Day says corn prices in Indiana are higher than the national average and there has also been a reduction in demand.

Day says it’s the second time this year the company has shut down its Montgomery County plant.

He expects the market will improve next year, assuming the state sees average rainfall.

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