AgTalk Home
AgTalk Home
Search Forums | Classifieds (144) | Skins | Language
You are logged in as a guest. ( logon | register )

Ethanol stocks vs Crude Oil Stocks.. 144 Rotary Rigs now parked.
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
 
JonSCKs
Posted 1/29/2015 18:55 (#4348002 - in reply to #4347983)
Subject: No Wonder we are exporting it..


Read our discussion below about HOW VALUABLE the OCTANE Component of ETHANOL is to make 87 grade Octane Gasoline.. like a dollar(s) a gallon..

In NE, the spread between 87 octane e10 and 87 octane with no ethanol ranges from 15 to 25 cents premium. To make 87 octane with no ethanol, they have to blend 60% 84.5 rbob and 40% 91 premium. At 15 cpg premium, the octane is worth 9.2 cents per point. at 25 cpg premium, the octane is worth 15.4 cents per point. Assuming some margin for blending, that $1/gallon for octane is reasonable. Ethanol is about 25 points higher in octane.

http://talk.newagtalk.com/forums/thread-view.asp?tid=531158&mid=4346918#M4346918

We are going FULL BORE on the Grind as the ethanol producers are fighting for the best business model left wins.. dumping ethanol on the market that THEY CAN NOT STORE themselves... for FIRE SALE prices... that have A DOLLAR OF VALUE in them..

BUY IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

BUY BUY BUY BUY BUY IT....!!!!

BUY ALL THAT you can get...!!!

9.2 + 15.4 = 24.6 averages 12.3 x 25 = $3.075 which can be bought for.. $1.?? even IF you PAID $2.00.. there's bookoo margin.. in that!

I mean WHAT PART of THAT does not WORK?

You can even EXPORT that...

OCTANE WORKS Everywhere.. it's the JUNK Gasoline that is going to go into STORAGE.. UNTIL it GET's BLENDED with OCTANE.. or ETHANOL..

Okay.. Who's with me?

edit: granted these values are based on what someone in NE is trying to sell 91 octane Rbob for.. RETAIL.. but hey.. I don't need a dollar profit.. I'd still do it for $.50.. he he he..

$3.075 RETAIL.. back that off to Wholesale.. what would THAT be...???

vs the RISK of a DROUGHT and PRICES going to the moon... 

Arkansas-Red Basin RFC Tulsa, OK: Current 180-Day Percent of Normal Precipitation Valid at 1/29/2015 1200 UTC - Created 1/29/15 20:31 UTC

 

There's someone in Oklahoma who gets this.. in more ways then one.

Ethanol is a ticking time bomb of Value.. waiting to go off.



Edited by JonSCKs 1/29/2015 19:13
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)