|
Boone Co. Iowa | http://www.ams.usda.gov/mnreports/nw_gr212.txt
Improving quite a bit over the past few weeks. I'm not saying that these numbers prove a lot or that they are exactly comparable and I'd say that every plant has different situation (efficiency, local basis, how long it has been running (i.e. amount of debt)), but these numbers would indicate that a lot of plants in Iowa will be able to run for some amount of time.
Things were questionable for a while, as local ethanol plant (Louis Dreyfus in Grand Junction) wasn't bidding past February there for a while.
Same day I posted this (http://talk.newagtalk.com/forums/thread-view.asp?tid=359468&posts=6#M2831532), the plant buyer called and asked to buy some corn for $7.50 (about 12 cents better than his posted basis at the time), and said that he would try to stay open as long as he could, but that he would basically be on a month-to-month situation, not buying much more than that ahead.
Strange that nationally the ethanol production has been going down and ethanol stocks have been rising....I guess rising crude and slowly rising gasoline prices have improved ethanol prices as well (which I don't really understand the market behind these prices)?
Anywho, looks to me like ethanol plants might start ramping up their buying...just wondered if others are seeing this or not....
I see a really tight pipeline of corn this July and August, especially if the 2013 crop is planted late, and/or we have a longer growing season (and thus later harvest).
I am painting a scenario in which the old crop/new crop spread inversion gets REALLY wide (I'd say $2 to $3.00 range in July isn't unforseeable). I'd be interested in folks arguing the other way, and what factors that would make them argue that way.
| |
|
Ethanol Margins
