|
| and will not dismiss them..................however IMHO, ethanol is gaining support.................or at the very least not losing any..........
a few things to think about with ethanol, it serves many purposes.....
first it subs in for oil, much of which is imported, some of which comes from the middle east..............this is a big deal these days, alternative energy and independence is an agenda item..........
second it creates a demand base that makes our grain more valuable, we are also an outlet for grain buying, thus this helps keep our grain prices somewhat inflated and closing a trade gap.............OUR GRAIN IS THE NEW DOLLAR IN TERMS OF FOREIGN TRADE..............
third, while many oppose ethanol, I have not heard one good explanation or exit strategy for it............its now an industry and can not just be shut off............even those that are opposed say there is not real good substitute yet...........now not having an answer has not stopped many jacklegs in DC, but with the aforementioned points, it just might...............
fourth, because ethanol is now an industry, a world industry no less, demand is still there, and getting rid of the blenders credit or even toning it down will not stop or even slow ethanol.............first off its mandated to be blended and used..............second most are starting to agree that at the very least there will be a phase down and pro rated scaled based on the price of oil.............THUS IT WILL BE SOMEWHAT OF A FLEX SYSTEM, KIND OF WHAT RAY J SAID, however not sure with the demand base there will be much flex.............
SO IMHO ITS NOT ABOUT DOMESTIC DEMAND ITS ABOUT EXPORTS................and I just don't see them going down significantly for an extended period of time............
Edited by Mizzou Tiger 5/24/2011 19:29
| |
|
Corn down $.25.......what gives?
