Esteemed Advisor
Posts: 2,495
Registered: ‎04-29-2011

The anti-ethanol gang.......

.....have taken a major hit today.  Corn supplies are now in fine shape.....we will not run out.    The food vs. fuel debate should be over for now.   E-15 anyone?     Ethanol producer's margins just got better.

Veteran Advisor
Posts: 905
Registered: ‎05-13-2010

Re: The anti-ethanol gang.......

might want to hold off before putting those "better margins" down in stone


ethanol futures dropped 13 cents, and there have not been adjustments in basis yet in those "spot calcuations" everyone likes to tout......a lot of dry mills out here were chasing corn hard at +35K and not getting their fill.....what do you think? Maybe another 20-25 cents on basis just to get the phone to ring???  And what about DDG's....I doubt they stay quite as high as they were a day or two ago......


oh, I expect some improvement, but nothing like the 40-60 cents down that corn futures reflect at the close today....give it a week and revisit it.....


PS....a lot of these ethanol plants likely bought some corn (futures) on the previous run down to $7....but are now going to have to pay even higher basis levels than they expected since we washed out so hard....


Ray J

Senior Contributor
Posts: 216
Registered: ‎05-13-2010

Re: basically if you can lock up some corn now

for delivery and use now thru august.  Better getter done.