Bedford Reports Issued for Stocks PEIX and BIOF

Dallas, TX 5/5/2011 (PennyPayDay) -- In a press release issued yesterday, the Bedford Report examines the outlook for companies in the Ethanol Industry and provided research reports on Pacific Ethanol Corporation (NASDAQ:PEIX) & BioFuel Energy Corporation (NASDAQ:BIOF).

According to the press release, driven by the US Clean Air Act and EPA regulations, the long term prospects for the Ethanol sector appear strong. These days, fossil fuels are losing favor, with alternative energies such as biofuel gaining traction as legitimate energy sources. In addition, new technologies to produce ethanol from plant fibers could help to make ethanol cost-competitive with conventional fuels, leading to further industry expansion.

New EPA regulations set forth this year have likely solidified ethanol's future in gasoline. The EPA approved the use of up to 15 percent ethanol in gasoline in vehicles produced during 2001-2006. The EPA had already approved the 15 percent ethanol tolerance for vehicles made in 2007 or later.

Ethanol can be used in much higher proportions, with up to 85 percent ethanol in special factory-produced vehicles. A growing number of these vehicles are being produced by auto manufacturers to test market demand for such a vehicle.

Not everyone is pleased with ethanol's surge in popularity, as recent reports have surfaced blaming ethanol for the skyrocketing prices at the supermarket. The favorable US governmental policies that promote corn being used by US-based ethanol plants have sent corn demand surging, leading many analysts to argue that ethanol is partially responsible for the higher corn prices. Since corn is used to feed-livestock, meat prices are expected to rise along with foods that include corn, such as cereals and bread.

Higher corn prices also squeezes margins for producers such as Pacific Ethanol. Although margins are narrow for ethanol producers, Chris Highsmith, senior commodities research and strategy analyst at Eco-Energy Inc. argues that it remains more financially attractive to continue producing ethanol than to shut plants down.

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