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| Yea I was just making up numbers there. But last time I looked into it the meal is what made it slightly feasible but it really needed to be combined with the RINs and even then it couldn’t really compete with oil
But you can’t put crude oil in food
That’s the point of my post really. I haven’t looked at ethanol but bean fuel just doesn’t work at the moment. And if oil goes up beans will go up too and the cost of the oil for transportation will be more.
For it to really work oil would have to go up and beans would have to stay down. But then they’d start using more beans and that would drive the price up and oil would stabilize until there’s an equilibrium but opec and major oil companies don’t want that so they’d probably pump just enough oil to constantly keep it cheaper
I don’t know the full economic supply chain of it. But it just seems from what I read that as of right now it isn’t feasible.
Like beans are pegged to oil production and the market will value them to the point where they aren’t cheap enough to be used for fuel
But if they ever did get to the point where they are being used for fuel without major govt subsidies USA farmers would probably be in a real world of hurt
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crude and ethanol relationship.......
