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Buxton ND | Your right DJ,,,,,,,,, most of the year that spread has been plus .70-$1.00
2012 crop it was like almost even to plus .15-.20,,very narrow spread,LESS E was used,blended,sold this is part of the reason we did not run out...... Less E was produced,think the grind was about 4.6ish bb worth.
IMO as this spread narrows,falling crude/RBOB,rising corn,,,rising E futures,,,E-futures follow corn more the RBOB.......................Less will be used/sold/exported. No facts of figures to back this up. Its simply dollars and cent in someone pocket to blend more E when that spread is very wide. E insider will most likely dis-agree with me here.
Falling gas prices in the long run will increase gas demand in general,hence more E being blending into that same demand. So say $50 crude,,,not a prediction,,,I have been bearish crude since ISIS poop hit the fan,,,they said that would NEVER happen back in 2007-08 too................................ Don't really think the corn guys wanna go there as to what price of E/Corn would have to be to keep the E plants running full steam with crude at that level................................If one thinks I'm blowing smoke out my back side,,,remember Vera-Sun ? ? ? Yes they bought too much high priced corn,yes they had some other F ups,,,,,,,,,,,,but 5 months of crude under $50 was way more then enough to bury them...................
*****************THE DOLLAR****************
After a pull back to 84.50 (this was textbook techy guys) looks strong to me,not super strong,just STRONG.
This plays into E -EXPORTS,rising dollar,rising E price,,,.15 rise in the average rack prices and E exports have fallen.... This ship go both ways,ANOTHER part of why we DID NOT run out of corn in 2012...............................
Dollar @ $90 by Turkey Day...........................
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REALLY I have no clue about the BS that drives the dollar,,,that's John Burn and others department,but the dam thing looks strong to me..................
There's some other techy things where one could really built a strong case for the dollar working to 90.....................
This dollar deal has got alot of markets nervous,,,,,,,to include all the hoofs and feathers.
BTW DJ REALLY NICE call on last winters beans !!!!!!!!!!!!!!!!!!!!!! | |
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Anyone notice the RBOB vs. Ethanol spread?
