So the grain cycle is boom and bust.. and ethanol is the mother of consumption.. and right now we're on pace to consume almost half the 2014 crop.. or almost 6 byn bushels.. but the NEXT DROUGHT will stop that.. so we'll have to live off supplies.. which makes ethanol trade between... What it is now.. and like DOUBLE what it is now.. I can build like 100 reasons why ethanol production slows.. but with $3.00 of VALUE.. and the POTENTIAL that SUPPLIES TIGHTEN.. PLUS Available STORAGE... this works. http://futures.tradingcharts.com/chart/AC/M?anticache=1422580527 I mean this works even better than Storing CORN.. because you BOUGHT a PROCESSED PRODUCT on the CHEAP... when it was CONSTRAINED by STORAGE at the PROCESSOR.. It's like BUYING HARVEST CORN.. GUT SLOT.. This ain't gonna last... This is starting to make some sense.. Now I understand why I am seeing what I am seeing... huh.. Wow. Why has the grind not stopped? (see above..)
Edited by JonSCKs 1/29/2015 20:48
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Ethanol stocks vs Crude Oil Stocks.. 144 Rotary Rigs now parked.
