East Central South Dakota | I agree with you on livestock demand. Not a bigger advocate for livestock production than myself.
We disagree on the 10% mandate on oxinated fuel. If we lose the 10% mandate we will never get it back and the glory days of agriculture are over PERIOD. This drought has terrible timing in its potential of killing demand, but no way we can absorb the 5 billion bushels of corn into the market. Would rather take my chances in losing some livestock than the 5 billion in mandated usage. If we loose the ethanol mandate, corn goes to $3 bucks even with the drought, because the market and Cargill knows we will never get it back.
I fought to hard to get it mandated and i know how the system works and we will forever loose 5 billion bushles of demand. People talking 12 to 13 billion crop. If we loose the mandate, like it seems you are in favor of, we only need a 8-9 billion crop. Livestock can adjust for a year and use other feedstocks and imported grain if need be. We loose the mandate agriculture is dead ! !
Your presumption that we can loose the mandate for one year and throttle back up is dead wrong. We loose it for a year we loose it forever. IMO
We raised either side of 9 billion bushels forever till ethanol came along and we shot up to 12-13 billion. Take the 1/3 of ethanol bushels that come back as feed and you can make a argument that ethanol has put more feed on the market not less.
Bottom line is Cargill does better in a over supplied market than the current stocks/use environment. |
Changes in value of a couple of ethanol stocks
