The FCStone Renewable Fuels Group is a major force in the ethanol industry. By 2006, our group will provide risk management for over 1 billion gallons of ethanol and over 400 million bushels of corn. This accounts for over 20% of the total ethanol produced in the United States.

Due to our large presence in the grain market(s) and feedstuff's end-user, we have a vast knowledge of the feedstuff's markets including co-product derived from ethanol plants. Our group utilizes cash, futures and over-the-counter (OTC) products to help minimize risk and maximize margins for our ethanol customers.

One of the commodities that has an impact on the overall profitability is the co-product produced within these plants.  This commodity, no matter what form, is at day-to-day price risk exposure.  That price risk can be mitigated.  In addition, there are other commodities that may have a positive or negative impact on co-product values in various geographical regions.  Not only is price risk a concern but logistically selling co-product is an issue.  These logistical issues can be handled through FCStone's subsidiary, FGDI.  Marketing and selling co-product is a key component of what FCStone can offer the ethanol plant.