Posted 3/26/2020 13:48 (#8140571 - in reply to #8139302) Subject: RE: Ethanol plant managers
Centuryfarm - 3/25/2020 23:04 Are the new fade. They panic buy corn at the top last June and July. And they puke out at the bottom. I had would bet they aren’t locking in corn needs until July with these cheap prices.
Its nothing more than margins. They buy feedstock (corn) and sell DDG’s and Ethanol. They do all three at same time to “lock” in the profit margin. Production is slowing because of negative margins. Prices will adjust and production will resume at some point. But for CF to criticize plant managers for panic buying at the peak and not buying at the low is only showing CF’s lack of understanding. CF thinks they should speculate. Plant managers who speculate usually guess wrong and ruin the business.