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Adams, NE | Peak to valley, gasoline demand changes 8% to 9%, so "gut slot" does not exist in ethanol. It is not like the ethanol industry produces 100% of a years needs in two months like fall harvest. We do not have a "gut slot" and supply/production match up fairly well. Energies do not trade like grains. That mentality has broke a lot of people and companies.
Energy traders want to get paid for storage and do not speculate in flat price. Crude was cheap at $55 a month ago...looks awfully expensive today.
Today transfer ethanol in chicago traded at 1 cpg discount to end of the month transfer. That is 1 cent contango for 1 day. you think that tank is empty? Nope. | |
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Ethanol stocks vs Crude Oil Stocks.. 144 Rotary Rigs now parked.
