Ethanol Margin Management Service

A Team-Oriented Approach Based on Objective Analysis

CIH is widely recognized as an industry leader in margin management. CIH’s Ethanol Margin Management team works closely with clients looking to take full advantage of the opportunities the markets offer. CIH works in a team-oriented environment, collectively serving the needs of each client’s unique profile.

Leveraging Unbiased Tools

We focus on helping ethanol producers capture forward profit margins up to 18 months out, while proactively managing natural gas and corn against ethanol. We help clients identify opportunities and protect profit margins, then assist them in making better margin management decisions. CIH consultants leverage unbiased tools and expertise to help operations develop strategies for:

  • When and how to establish a forward strategy
  • Adjusting positions as individual markets move while keeping strategy in the context of net profit
  • Creating “what-if” scenarios for evaluating adjustments in pricing, operation efficiencies, basis, etc.
  • CIH helps ethanol operations get a comprehensive view of current margins while identifying opportunities to improve risk posture and protect profitability many months out. The approach is tailored to your actual operation, cost structure, contracting, physical deliveries, etc., which allows us to develop a focused plan to target favorable margins regardless of what happens in the marketplace. Our clients have standing one-hour calls every week where we review markets, positions, and any needed adjustments to strategy.

    Invaluable Customization

    All CIH clients have unlimited access to an easy-to-use, secure website that showcases an updated, accurate picture of your forward profit margins, all natural gas, corn and ethanol positions, and a customized model of your operation’s actual costs and revenues that is invaluable for quickly evaluating buy and sell decisions.

    For a demonstration of how CIH can help you make better marketing decisions, please call us at 1.866.299.9333.

    Reduce price risk. Protect profit margins. Take control of your bottom line.

Get Started

Subscribe to Ethanol Margin Watch

CIH’s Ethanol Margin Watch is a bi-monthly report focused on the factors affecting forward profit margins in the ethanol industry, as well as strategies ethanol producers can use to protect profitability. Subscribe using the form below.

CIH and Margin Management

Establishing a solid margin management program is a critical component of your overall buying or selling function. We work directly with clients to assess and reduce price risk through a unique and effective process. We provide the technical expertise and service to get the job done including:

  • step-by-step plan to set up a margin management program
  • evaluation of forward margins to objectively identify opportunities
  • analysis of your market exposure of physical, futures, and options combined to ensure the right coverage.
  • powerful risk analysis software used to model strategies.
  • monitor & evaluate position performance.
  • skill at incorporating options into physical and futures positions.
  • insightful market review and analysis.
  • reporting tools
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