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| I think that is why some coops are proactive with their involvement in ethanol plants. They could find themselves isolated by competition from them. If you have large volume of business and are suddenly faced with a high volume competitor with a bid advantage, you could find yourself in deep doo doo. Your local coop is apt to find themselves in the role of a farm supplier instead of a grain marketer. However, the ethanol plant may wish to use them as a corn originator in lieu of building large storage facilities. They will probably still need to provide a market for soybeans and feed supply for livestock feeders. | |
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How is ethanol affecting your basis?
