Death comes to us all. Life's but a walking shadow | How much of that DDGS is now replacing soymeal? Does China restrict DDGS's as part of the corn quota?
By the way this whole ethanol market is puzzling to me. Basically ethanol has gone from $2/gal to over $3/gal. Even if the cost to move a tank car of ethanol has doubled ($2500 to $5000) the increase in cost is at most $0.08 ( $5000-$2500/34500 gal). So if it isn't freight cost then it must be an absolute failure to provide service. This seems remarkable to me because the demand for ethanol (consumption per week) is pretty well known (or at least should be). How can an industry (the ethanol producers, the railroad companies and the fuel blenders) not know how much ethanol they will need and arrange long term delivery contracts? I can see them being short a small percentage but not enough to justify the $1+ difference in price.
Maybe you have access to people who know what happened there.
Thanks in advance. |
We might need a few more corn acres..
