East Central South Dakota | 1. Boone pretty much nailed the it..... Ethanol technology is rapidly improving efficiencies for some plants----making others a high cost producer. What happens to high cost producers in commodities ? ?
2. These new technologies and efficiencies are pushing plants over name plates towards 3 gallons/bushel which is putting more ethanol on the market with only a 10% mandate and e-15 STILL is in a restricted market. e-15 is the only way out of surplus with the blend wall. EDIT--gasoline consumption continues to fall---less gallons to blend with..
3. China has to burn ethanol to deal with their polluted air, but they want to produce it themselves. Plants in China are starting to come on line displacing imported ethanol... Brazil is actually switching over to corn starch ethanol for a number of reasons, the high value of co-products for feed one of the reasons---they want to expand animal proteins also. Nice fit.
4. Green Plains is a scary company. Their entire value is just based upon stock value with not much revenue stream. They have been buying all kinds of different BIO plants outside of just ethanol. Every time they buy a plant/company they have a huge public relations campaign and their stock rallies. When their stock starts to devalue because of a lack of revenue and working/investment capital starts to wither and they are forced to live on revenue generated----it might get interesting. You heard it first on AGtalk......
5. https://www.bloomberg.com/quote/GPRE:US click on annual with the bar graphs for a big picture trend.....
Edited by white shadow 9/17/2018 23:19
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Green Plains shutting down 2 Iowa ethanol plants
