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vrbuck
Advisor

Re: weekly good new of ethanol stocks and production

There is as much support tor e15 as there is for qe3. Neither will happen before election time. The government can't bail everyone sometimes the free market has to work.
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Hobbyfarmer
Honored Advisor

Re: weekly good new of ethanol stocks and production

Kind of hard for the "free market" to work with a 10% cap on it.

 

Cheap ethanol needs a way to get into the market, right now 10% cap on all but the few flex fuel vehicles out there and then E85 is a little hard to find in some markets.

 

Check out the whole story before you start typing?

 

187 bu / acre this year huh? Maybe you need some average farmground?

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too close for comfort
Senior Contributor

Re: weekly good new of ethanol stocks and production

I think most people are hopefully bullish but realistically bearish towards what ever they produce, and hopefully bearish and realistically bullish towards all their inputs.

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ray h.
Senior Contributor

Re: weekly good new of ethanol stocks and production

vrbuck     I just beleive that there is always some thing possitive about a given sitsuation.When things get down,way down there is only one direction left,north or up.Like the old timers used to say,the lower it goes,the higher it will go! When a real bearish sitsuation is properly observed,one can usualy make adjustments along the way in his farming practice weather it be production methods or acreage ditribution,and be properly prepared for the next bull!Maybe you can now justify putting that hay production back or that north 40 pasture,or its time to play with a little more no till,fallow,or just be ready to buy crop when it becomes lower than the cost of production!

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GoredHusker
Senior Contributor

Re: weekly good new of ethanol stocks and production

How can one argue that there's a 10% cap on it all the while acknowledging that E85 is out there but hard to find?  A couple of years ago, locally we had a few E85 pumps.  Today, the closest E85 pump is nearly 100 miles away.  Why did they disappear?  No one was buying it.  This brings up the next question.  How many fuel stations will put in another pump for E15?  If they don't, then they have to take out their E10 pump.  Has anyone actually thought this through?  By taking out the E10 pump and making it an E15 pump, ethanol usage may in fact drop.  I even read last summer where the President of the RFS was thinking the same thing.  It's because of the huge labels that must go on the E15 pumps.  He was concerned consumers might get scared away from ethanol all together. 

 

Low prices will take care of themselves eventually.  Either exports will pick up due to the fact that gasoline prices Worldwide are going up and our ethanol price may or may not or Helicopter Ben will implement QE3 pressuring the dollar down causing exports to go up.  I read an article the other day that stated GE wouldn't compensate any of their employees for mileage unless they owned an electric car.  I find this a bit more alarming than the current carryover of ethanol stocks. 

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