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Adams, NE | Spot margins are positive at today's corn prices. Absolutely. The real crux of the ethanol business (and what they can pay for corn and still be profitable) is gasoline demand. Since we are at the "blend wall" in the US, the only way to change the supply/demand balance is by changing the amount of gasoline used.
Yes, I know exports of ethanol are supporting the margin structure today. Exports will slow down in the next couple of months as Brazil cranks up for the sugar cane harvest season. | |
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Corn futures in June of 2008
