Does a $.20 rally in RBOB translate into ANY strength in Ethanol... ??? I hope ethanol inside responds to this as he know a lot more then me, but I would say to answer that question it is way too early for the RBOB price to have any effect on the ethanol price. If you look at history RBOB is almost always a fair amount higher then ethanol. It has been a little different the last few months and with RBOB going back up I would say it is getting closer to normal and it would need to go up a lot more before it would have any effect on the ethanol price. I think poor exports and the stock build are going to negatively affect ethanol prices a lot fast then RBOB going up. I know you and I had this decision earlier and you think there is plenty of storage for ethanol but I would guess with these stocks there are plants that are starting to get concerned as to where they are going to store their ethanol production. It doesn't do any good to have a lot of storage for something if it is hundreds of miles away and no way to get it there. I have not had any close contacts to the industry for awhile so it is just a guess on my part about the storage issues. |