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Buxton ND | What kind of Ethanol insider are you ? I will strongly dis-agree with you E demand being fixed,especially this time of year when Butane can be blended plus butane stocks are quite high.... The minimum alcohol level needed for a oxygenate is 5.6% If ethanol demand was "fixed" E stock should closely follow E production minus the net import and exports. If you look at an Ethanol gas pump its says "up to 10%" I do not know of any government agency that pulls E-10 samples at the pumps.
The RBOB/E spread does in time DOES effect E margin's,,, the cheaper ethanol can be bought the more is blended it comes down to simple dollar and cents in the blenders pockets. If Ethanol demand is fixed why did stocks fall so low in Nov. of 2011 as E plants where running balls to the walls and then set all record high this March and April. Add to that we're really on a new playing field the last 11 month without the BTC | |
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