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Frequent Contributor

Re: When ethanol subsidy ends

Good points MArk and vrbuck.


It takes 13 lbs of sugar to make ethanol. Looking at world sugar price, its DOA as a biz venture.


30 States now have individually banned MTBE, including NY and CA.


The EPA forces blenders to use an oxygenate.


Meracantilism is back in vogue. Its all about holding the stuff you produce domestically off the world market. We do it with grain via ethanol, Brazil does it with sugar via ethanol, Saudis do it via not drilling much, Chinese do it via Rare Earth Metal export tariff, Russians do it via export tariff on fertilizer, and now Costa Rica is looking to stop export of coffee and Bananas. Oh ya, and Western African nations are actually letting cocoa rot just to raise value of it.


Mercantilism doesn't work if a bull market means higher production Internationally. Those days are behind us. At least that's what world leaders believe. When you look at what non-opec oil production did the last 6 years, you can see why the exporters aren't worried about the effects of hoarding.


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Senior Contributor

Re: When ethanol subsidy ends

$.46 tax credit ends next year. Mandate stays in place until the food for fuel people win the debate. Not much effect on the price of corn until then.

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