Thread: Corn and Ethanol.

Check the Gas Mileage and the subsidies and recalculate that price please.
Refineries are down for maintenance, that drove up the price along with Obama and Putin.
aaa.jpg
Daily Fuel Gauge Report--national, state and local average prices for gasoline, diesel and E-85.

Originally Posted by James48843

That price spike had nothing to do with the renewable fuel standard. Pardon my French, but any inference that RFS caused the price spike is pure bull. Ethanol is cheaper than gasoline. Period. And should continue to be, from here on out. We've past the tipping point. It will Never be more expensive than gasoline, unless there is some massive disruption , like a major drought. Even if that happens, it will only be temporary.

I said there was an unnatural bubble in the price of ethanol- and no reason for it, on March 31- a day when it hit $2.85 a gallon.

And lookie there- it dropped like a rock shortly after.

Yep- no reason at all that ethanol was above $2.25.

Note- it should stay much less than gasoline through the summer.

Took you almost a month to reply to the post. Waited that long for the price to sort of even out to try and say,"I told you so!"? Typical.

This had everything to do with the mandate. Around 85% of the U.S. population lives within 100 miles of an ocean or gulf. How many terminals or pipelines has Archer Daniels Midland built or paid for? Zero. The ethanol industry got that taken care of with the RFS mandate requiring the oil companies to blend the ethanol in with gasoline. Roughly 80 years of spending on infrastructure gone into the oil industry and the ethanol producers get it for free. Pretty sweet deal, huh? Ethanol might "work" in the midwest (rail costs less the less distance you ship -- duh!!!!) but not out to the coasts where the majority of americans live.

About your little chart up there. When there's a shortage you don't price things a month out, you have to live in the now. The refiners and distributors couldn't get the ethanol to blend in so they had to pay spot price, which you ignore -- either intentionally or through ignorance. Ethanol spot prices in some places were over $4/gallon and here on the Gulf Coast it got to $3.64 (alot more than gasoline spot) but, as they said in Goodfells, "F&*ck you! Pay me!" we got the mandate -- gas cannot be sold most places unless it's 10% ethanol. Perfectly good gasoline sitting in storage can't be used because of no ethanol to blend. The very definition of false demand. Think this won't happen again? HA!!! The oil industry has to pay for the new transportation costs of ethanol to the population and guess who that cost gets passed down to?

Oh, ethanol will NEVER be more expensive than gasoline? That's not me on the other side of that bet -- it's the Old Testament Lord with plagues, locusts, floods and droughts. So, don't couch your statements with "unless there's some massive disruption" because that's the very nature of commodities (duh, supply and demand) and why you and ethanol backers don't understand the true costs of the energy industry.

Ethanol is getting a free ride because of the mandate and therefore is not fully priced because that tab is being picked up by the refiners and producers of oil.

You can make price say anything you want it to -- you won't fool me because I know what it costs.

First rail car of Sugarbeet Ethanol shipped


Aventine Renewable Energy Inc., a producer, marketer and end-to-end supplier of ethanol, announced last week that its first railcar shipment of ethanol produced at its Aurora West facility in Aurora, Neb., using sugar beet sugar as feedstock occurred.

“We are excited to have Aurora West up and running, creating local jobs, and contributing to the Nebraska economy,” said Mark Beemer, Aventine’s president and CEO. “This marks an important milestone in Aventine’s continuing story of innovation and demonstrates our leadership in the ethanol industry. By producing sustainable green energy, we’re also helping to ensure America’s domestic energy security.”

The company has hired 52 employees to date, and expects to hire 18 more in the next two months, for an annualized payroll of $4.6 million. It was noted that the company has already injected $10.6 million into the local Aurora economy through expenditures on operational needs.
Aventine Renewable Energy, with headquarters at Pekin, Ill., is a producer and marketer of industrial and fuel ethanol and related byproducts, bio-products and co-products related to ethanol production.

http://www.agprofess.../261300731.html

Originally Posted by James48843

Ethanol is cheaper than gasoline. Period. And should continue to be, from here on out. We've past the tipping point. It will Never be more expensive than gasoline, unless there is some massive disruption , like a major drought. Even if that happens, it will only be temporary.

Hey Jim, what's the spot price on the December contract for RBOB? and for ethanol? When was that "major drought" or massive disruption?




I've heard crow tastes a little better with Tabasco. Eat up buddy.

Now with oil prices hitting new lows again...I venture to say it will be cheaper by the gallon for gasoline to be 100% pure, than blend it with expensive moonshine...

Originally Posted by Minnow

Hey Jim, what's the spot price on the December contract for RBOB? and for ethanol? When was that "major drought" or massive disruption?




I've heard crow tastes a little better with Tabasco. Eat up buddy.

Spot price today for December RBOB gasoline is $2.0503:
http://www.cmegroup.com/trading/ener...-gasoline.html

Spot price today for December ethanol is $2.02
http://www.cmegroup.com/trading/ener...t-ethanol.html

Ethanol is cheaper.

Then look at, oh, say JUNE 2015.

Ethanol is at $1.71.
http://www.cmegroup.com/trading/ener...t-ethanol.html


RBOB is at $2.24.

any way you cut it, energy prices are better now for the consumer than they've been in years.

P.S.= I paid $1.85 a gallon at the pump yesterday for renewable E-85 fuel.
What did you pay?

E85 Prices » Michigan » East Lansing

Your figures are correct. However, Rob broke below ethanol for about 1 hour. You said never and underlined it. Remember? The words you were looking for are: "I was wrong, Minnow. You were right.". Come on fonzie you can do it.

I don't think you guys are taking into account Ethanol Subsidies? We pay for that too!

Originally Posted by nnuut

I don't think you guys are taking into account Ethanol Subsidies? We pay for that too!

You must have me mistaken for someone else. I know that you know that I know that you know that I know how subsidies reflect in price and total COST. Even with the ethanol mandate, rbob just broke below ethanol when Mr. "Just report the facts" stated in bold and underlined that that would "Never" happen without a major drought or massive disruption. Less than one year later, what happened?

Jim's still my favorite Michigan resident and all, he just needs to suck it up like the Fonz did on Happy Days and say he was wrrrr rrrr rrrrr wrrrong.

There's something wrong with those Progressives, when they make up their mind you can't change it no matter how WRONG they are. What's up with that?ymac.gif

Originally Posted by nnuut

I don't think you guys are taking into account Ethanol Subsidies? We pay for that too!

]

There are no ethanol subsidies anymore, Nnuut. That ended over two years ago. This is all "free-market" pricing now.