Average profits for distilling US ethanol rose slightly this week as corn prices retreated below $6 a bushel on profit-taking from a recent big rally, analysts said.

Ethanol margins rose a nickel from last week to about 20 to 30 cents per gallon as prices for corn, the primary input for distillers, eased a shade.
While the profit margins improved, analysts said they remained relatively thin and would likely remain that way until corn prices dropped further.
“The input cost for corn is still very high and as long as that lasts distillers won’t be making much money,” said Cory Garcia, a research associate at Raymond James and Associates in Houston.
The next major corn crop report is not expected until late spring, which could keep prices for the grain high until then.
The May corn contract on the Chicago Board of Trade closed at $5.94, down 6 cents in a week. Prices had hit $6 after the US Department of Agriculture report last week and wet weather in the US Midwest that slowed planting.
Spot ethanol prices in the Midwest were pegged at $2.55 a gallon over the week, up about 1 cent from last week, supported by high petroleum prices.
Crude oil traded around $110 a barrel on the week, up about $5 from the week earlier, supported as the dollar fell versus the euro.
The ethanol crush spread rose about 2.25 cents to 42.25 cents per gallon, according to Reuters calculations. After conversion costs for making the fuel, including natural gas costs, ethanol producers were averaging about 20 to 30 cents per gallon in profit.
Strong prices for natural gas, which fires most ethanol distilleries, also hurt profits. Average cash natural gas prices in the Midwestern US were $9.29 per million British thermal units, up $1 from last week.