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eastern Nebraska | Right. Kind of... Why would they let DDG's go to waste if they don't have to though? They might be able to import corn (cheaper) for industrial use and get around the import taxes. The VAT tax on DDG's went bye-bye last week and there's rumors the anti-dumping tax is going away too. There's also rumors that big subsidies are coming to the industrial processing sector. Big corn business was done off the PNW last week, hearing lots of speculation that it was China. Point is, this might mean demand "now" that isn't in the current balance sheet. This move to 10% ethanol blend in three years was just put forth after their big central planning summit. Last week COFCO and CGNOIC both made statements regarding more soybean imports than WASDE has figured in... which makes sense if they are planning to reverse their move towards shifting acres away from corn to beans... on a value basis, they would rather import more beans. This whole thing may have large implications that we need to be paying attention to. So, IF they can blend good DDG's into bad, I don't think being piled into a record corn short is where I'd want to be right now if I were a fund manager. I see a lot of analysts telling producers to sell the first good bounce they can get in corn. Is that really the best decision right now? Everyone seems to be shrugging this thing off... and maybe it isn't that big of a deal right now, but if it is a big deal, I don't want to be asleep at the wheel. | |
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Ethanol Insider... a question...
