11 Best Ethanol Stocks To Invest In Now

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5. Adecoagro S.A. (NYSE:AGRO)

Number of Hedge Fund Investors: 13

Adecoagro S.A. (NYSE:AGRO) is a leading diversified agribusiness company with operations in Brazil, Argentina, and Uruguay. The company’s Ethanol and Energy segment produces sugar, ethanol, and energy. Adecoagro S.A. (NYSE:AGRO) also sells carbon credits and renewable natural gas certificates.

Adecoagro S.A. (NYSE:AGRO) has been actively expanding its ethanol production capabilities and is focusing on maximizing the production of Hydrous Ethanol, a mixture of ethanol and water that is used in vehicles and for industrial purposes. The company’s strategic focus on Hydrous Ethanol is driven by its better margins and the growing preference for this product over other forms of ethanol.

Adecoagro S.A. (NYSE:AGRO) is employing a strategic approach to inventory management to maximize its ethanol sales. The company has been holding onto 49% of its year-to-date production to take advantage of anticipated price increases. The company’s management expects that ethanol prices will rise during the inter-harvest season due to lower supply and increased demand. By strategically timing its sales, the company can maximize its returns and capitalize on market fluctuations.

To further strengthen its ethanol business, Adecoagro S.A. (NYSE:AGRO) is continuously improving its operational efficiency. The company is investing in the expansion of its sugarcane plantation in Brazil, which serves as the primary raw material for ethanol production. These investments include the acquisition of new land and the development of advanced agricultural techniques to maximize yields. Additionally, Adecoagro S.A. (NYSE:AGRO) is addressing bottlenecks in the milling process to increase production capacity.

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