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Ethanol--Very Important Price Support for Corn
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paul the original
Posted 12/3/2013 09:42 (#3487833 - in reply to #3487813)
Subject: Re: Ethanol--Very Important Price Support for Corn


southern MN
Low USA dollar value and other countries having some money to spend is what has added value to grains. World economies, USA losing value. Look at relative values of other core products; tires, crude oil, gold, etc. USA dollar is deeply devalued, making corn and other grains worth more USA dollars to us, relative to the world standard.

Two rough years of crop conditions has added value to grains. We used up a lot of the surpluses we are used to seeing.

Ethanol has helped the basis 15 cents or so here in the upper Midwest. Typically we use 60% of the corn locally, and are dependent upon shipping channels to get rid of the rest to very far away end users. Ethanol gives us a new local buyer, improving the rotten basis we used to get. It has altered the whole feed complex tho, lowing the value of soybean meal, and other shifts due to the DDGs now available.

Ethanol uses only the starch from 39% of the corn, the protein and minerals are returned to the feed stream. Far less than 39% of the corn is used by ethanol production.

Paul
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