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SC Iowa | ILLRick:
Ethanol Insider has done a good job of describing the state of profitability in the industry---and the fact that ethanol plants didn't stay naked longs with those $4 corn purchases.
I was listened to a petroleum analyst on Bloomberg Radio on the way into the plant today....last name was Short....he believes we are close to gasoline demand peak for the season.......ethanol has had a great run, especially due to the strong export demand...
we continue to see ethanol capacity come on line....what happens if exports start to drop off after Brazil cane harvest refills their internal pipeline......and if gas demand stagnates at same time ethanol supply is increasing......
it's been a great ride, but eventually things change.....it takes the right combination of crude oil, RBOB, corn, and ethanol prices to make it all work...... | |
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Corn futures in June of 2008
