cancel
Showing results for 
Search instead for 
Did you mean: 
BA Deere
Honored Advisor

Ethanol is always up, but never goes up

It`s like Neo and Trinity are trading ethanol in the Matrix and it goes up, yet the price is always 2.22 and the rest of us have had too many "blue pills"   🙂  Wait a minute, "blue pills" have come to mean something else these days.... don`t need any of those 

https://finviz.com/futures_charts.ashx?p=d1&t=ZK

 

0 Kudos
13 Replies
BA Deere
Honored Advisor

Re: Ethanol is always up, but never goes up

GasBuddy predicts $4 gas by Memorial Day, that would be positive for Ethanol and good news for grain prices.

https://www.cnn.com/2021/12/28/business/gas-prices-inflation/index.html

ddtfarm1
Veteran Contributor

Re: Ethanol is always up, but never goes up

In the same article, Gas Buddy also predicts gas under $3 by Fall of 2022.

lsc76cat
Senior Advisor

Re: Ethanol is always up, but never goes up

My question is - given the price of crude - why is gas priced as high as it is?!?!?!

sw363535
Honored Advisor

Re: Ethanol is always up, but never goes up

Question 2........ Why is higher gasoline prices good for ethanol?   IMO that is not right.  higher gas prices means lower sales and less demand for ethanol.

. yet I am quite fond of question 1......   answer to 1 is "holiday price gouging"---maybe

Tags (1)
Hobbyfarmer
Honored Advisor

Re: Ethanol is always up, but never goes up

As always with the price of motor fuel...

Feel free to walk / peddle on by...

0 Kudos
lsc76cat
Senior Advisor

Re: Ethanol is always up, but never goes up

I've watched the correlation between RBOB price traded in Chicago and the pump price for years.

RBOB price plus taxes used to be a "loose" indicator of where pump price was headed.

That correlation has been shattered.

One other thing I've noticed.  If there's a Fleet Farm in the neighborhood pump price is cheaper.

Mankato and Owatonna sure demonstrate that.

0 Kudos
Hobbyfarmer
Honored Advisor

Re: Ethanol is always up, but never goes up

also good in 2 Des Moines area Fleet Farm stores.

Costco is still almost always the place to wait in line for fuel.

0 Kudos
BA Deere
Honored Advisor

Re: Ethanol is always up, but never goes up

A while back Sams Club in Mankato was selling gas too cheap and the state of Minnesota brought the hammer down.  I think to get Fleet Farm to move in, no one can under cut them.  Fleet Farm is kind of tricky with their fuel coupons and "4¢ off"  if you make a purchase in their store, kind of a loophole. 

https://www.mankatofreepress.com/news/mankato-sams-club-pays-20-000-penalty-for-illegal-gas-pricing/...   

snip

MANKATO — At least one Mankato fuel seller was selling gasoline at prices below the minimum required by law and has agreed to a $40,000 penalty, according to the Minnesota Department of Commerce.

The exceptionally low prices offered by Sam's Club on Madison Avenue were matched by the Mill's Fleet Farm fuel station when it opened in April, which appeared to be the spark that caused a lengthy local gas war that left local drivers with weeks of steep discounts compared to other Minnesotans last spring and summer. But those prices were below-cost, which state law prohibits, according to the Commerce Department investigation that prompted a "cease and desist order" to Sam's Club late last month.

Sam's Club has already paid a $20,000 civil penalty imposed by the Commerce Department and agreed to pay $20,000 more if it doesn't stay in compliance with the fuel pricing law in the future. The law, which requires fuel sellers to keep prices above the wholesale cost, was violated at least 20 times at the Arkansas retailer's Mankato fuel station between April 14 and May 19, according to the department.

 

The Mankato gas war, which began in April and lasted for more than two months, left fuel prices up to 20 cents lower than other parts of the state but prompted complaints by smaller convenience store owners to the Commerce Department, which launched an investigation. Some pointed to the opening of Mill's Fleet Farm while others said Fleet Farm was only matching the Sam's Club price.

While Sam's Club, which is a membership-based wholesale club owned by Wal-Mart, was the first fuel seller to be fined, it might not be the last.

0 Kudos
clayton58
Veteran Advisor

Re: Ethanol is always up, but never goes up

So why is government at any level mandating gas prices???