We've been talking about ethanol plants cutting back for over a year now.

No doubt that margins have eroded.. still when you read the article.. and consider what happened Friday.. Corn Rallied on Short covering as those short Corn need to cover losses in other markets.. which.. drove ethanol futures higher.

Read the article.. not saying that I agree with everything it says.. but.. it does a pretty good job of explaining the landscape today.

Our ethanol plant is probably running 110% of capacity.. we have a basis advantage with Cheap Sorghum.. not running 100% sorghum but certainly cheapens up the grind.. This plant has the ability to load unit trains.. last year they shipped Sorghum out.. this year it's wheat..  So it's running 100% FLAT OUT which is making it efficient.  Furthermore they just brought their own steam powered generator online.. so now they are running their process steam to spin a turbine to generate their own electricity to run the plant to further cut costs..  "Roll'in Roll'in, Roll'in.."  Not sure what their margins are right now but I would be surprised if they were negative...  As are many other destination plants.

The washout in Crude is going to have a response..  Lot's of producers/Oil dependent countries in this position..

( http://www.energyintel.com/pages/trending.aspx?DocID=912664 )

No doubt we are shutting in production now.. I was wrong earlier.. I did not see the Iran deal coming.. KSA is MAKING SURE that Iran sells it's surplus as CHEAPLY AS POSSIBLE.. However, as the rest of the world shuts in.. no doubt Crude is gonna rally..  $8.35 Crude in Canada IS NOT SUSTAINABLE..

Some analyst are (once again..) calling for $60 Crude by the 3rd Quarter.. probably a litte optimistic on timing and or price.. but I do not subscribe to the belief that we are going to stay down at these levels for long.. 

WHEN KSA has inflicted enough pain.. they will ease back on production.. and let prices rise.. I'm sure they will keep an eye on shia Iran.. etc.. but their main objective is to run the US Shale producers out of business.. Given the stories coming from the Banking sector.. (see below..)  We appear to be VERY CLOSE to "Mission Accomplished".. on that front.

Again., the amount of debt in the Oil Sector is as large or larger than the amount of debt in the Housing bubble that kicked off the Great Recession..  If Crude stays down here.. Well I already think we've entered a recession.. now just a question of how big?

edit add: Flip side.. some drillers in the Permian are still getting Wall Street $$$ ( http://www.houstonchronicle.com/business/article/Permian-Basin-still-has-a-lifeline-amid-the-oil-6763157.php?t=9e51d385d1438d9cbb&cmpid=twitter-premium )

JMHO.. could be wrong..  Lot's of moving parts.. doubt that anyone.. (myself included..) has it 100% pegged..

Cheers.