Author Topic: Price Spread ready to collapse (Read 6876 times)

BJoe · « **Reply #42 on:** July 31, 2012, 10:31:21 PM »

Looks like the spread is getting better around here, Dad and I have been seeing $3.89-$3.99 a gallon for regular around us. Unless corn has jumped a huge amount, the spread around here should be decent.

For curiosities sake, when you guys figure your spreads, do you guys go be stations you buy it at, or by the non selling stations closest to home, or both like I kind have been. For me, I've compared the prices at the stations I've bought from, but since I usually have do drive 9-10 miles to get the stuff, there can be a significant difference from those stations to the ones closer to home and/or work.

HuskerFlex · « **Reply #41 on:** July 13, 2012, 11:19:34 PM »

dan... sounds great and logical... so would never fly. You are assuming that this would be compentently managed witht the benofit of producers and consumers at heart, for the overall health of the markets and connected markets...

You are forgeting that the markets are run for the benofit of those with the deepest pockets/best connections.

That being said, such a system would make it much harder for folks to bet on the market/speculate... so would not be allowed to ever happen.

Agree it would make sence.

Billyk24 · « **Reply #40 on:** July 13, 2012, 08:52:37 PM »

Hold everything....
Oil prices have risen for the third day in a row via ..
http://www.canadianbusiness.com/article/90870--oil-prices-rise-for-third-day-as-traders-focus-on-supply-issues-in-key-areas

Less than one month ago, those folks were announcing record supplies and now.....

A rise in oil prices could help the the E85-E10 spread but a better solution would be a feedstock diversification for ethanol production. Then again, an emphasis on using ethanol as an alternative fuel and not so much as an additive needs to occur.

Dan M · « **Reply #39 on:** July 13, 2012, 05:27:59 PM »

Minnesota's Corn was looking great up-to last week ...was just starting to look stressed but now it's raining..looks like most of the State got rain today...so unless we get another big dry spell Minnesota's corn crop will be strong

again the solution to get corn and ethanol prices (as well as to help poultry, hog cattle producers) down in situations like this is to drop E10 to E9 or E8.. each point represents about 1.2 billion gallons..

So instead of producing 13.2 billion gallons of E10.. lower the pressure on corn and only allow E9 ..bringing the total amount of ethanol produced to 12.0 billion gallons....if the drought continues.. lower to E8 etc..

Billyk24 · « **Reply #38 on:** July 11, 2012, 07:45:57 PM »

Quote from: Wintermute on July 11, 2012, 08:50:41 AM

With e10 being 3.29, and E85 being 2.84, I'll probably start alternating tanks fill ups at a minimum.

For comparison in southwestern Pa., I just filled up with E85 which is priced $3.09 while E10 is $3.35. E85 has dropped in price from $3.19 to $3.09 while E10 has moved from $3.49 to $3.35 in the last 16 days. For long time, this station was pricing E85 40 cents a gallon less than E10, earlier this year it moved to 30 cents a gallon less than E10 and now..?

BJoe · « **Reply #37 on:** July 11, 2012, 12:16:07 PM »

Haven't heard on Brazil, but I did see that there was a derailment in Ohio that ignited a few Ethanol cars. Somebody they talked to said they were just letting the stuff burn off.

HuskerFlex · « **Reply #36 on:** July 11, 2012, 12:05:57 PM »

has anyone heard any weather/sugar cane harvest news from Brazil? Just currious if they were still seeing increased use of cane for table sugar/less for ethanol and having ethanol shortages?

Would be nice if they were having a bumper crop and exporting large volumes. Havn't they dropped the import tarrif on ethanol as part of VEETC's experation?

BJoe · « **Reply #35 on:** July 11, 2012, 11:21:37 AM »

Talked to a customer at work Saturday that farms, sounds like his crops aren't doing so hot right now too. The heat wave is over around here, but now we have several days of just beautiful sunny weather ahead of us. Last year, it seemed like it was constantly wet out side, this year must be ye counterpoint to last........

rusty70f100 · « **Reply #34 on:** July 11, 2012, 11:11:46 AM »

Well the corn crop around here has about had it. If we don't get some substantial rain soon, things are not going to go well. Already a couple of farmers around here that I know of have made silage out of it, and tilled it up.

It's not a good year for ethanol, that's for sure.

Wintermute · « **Reply #33 on:** July 11, 2012, 08:50:41 AM »

Filled up last night, and noticed e85 had jumped a dime, where other gas prices had stayed the same.

With e10 being 3.29, and E85 being 2.84, I'll probably start alternating tanks fill ups at a minimum.

Wonder how those beets are doing up in North Dakota...

BJoe · « **Reply #32 on:** July 10, 2012, 09:01:20 AM »

Thanks for the heads up James!

James48843 · « **Reply #31 on:** July 10, 2012, 07:37:11 AM »

Here is an alert for everyone-

The price of ethanol on the CME Chicago exchange has been soaring the last few days- yesterday's close it topped $2.50 a gallon. That's up .50 cents in the last 17 trading days, and up 20 cents in the last three days.

Ethanol is now just 20 cents cheaper than gasoline at the trading floor stage. Watch for huge prices increases and reductions in price spreads shortly at E85 pumps.

Bummer.

jeepn30 · « **Reply #30 on:** July 10, 2012, 07:22:33 AM »

Quote from: BJoe on July 06, 2012, 11:38:36 PM

What are you seeing out that way for prices on regular gasoline? Where I'm at ranges from $3.59-$3.79 for regular and Diesel tends to be comparable to both regular or premium gas depending on which station I pass. My last fill up at Woodmans in North Aurora was still $2.99 for E-85, but I forgot to look at what they were selling the rest for tuesday.

Gas prices here for regular have been running 3.45 to 3.59, depending on which station you go to. It was 3.39 in South Beloit when I drove by yesterday. All of the Road Ranger stations have E85 at 2.99 right now, so it's spread is decent compared to a couple months ago when the spread was miserable, and E85 was 40 to 70 cents higher a gallon than E85 at Shell on Baxter rd in Rockford, which has been 2.99 since March I believe.

Thumpin455 · « **Reply #29 on:** July 08, 2012, 07:35:15 PM »

BJoe you have to have some way to break down the long chains of starch and the lignin that the plant uses to support itself. Yeast cant do that on their own, and traditionally heat and acid baths have been used to break down the fibrous parts of cellulose to use as fuel. That ups the energy input needed, and adds to complexity of the process.

Sugar is direct for yeast to consume and produce ethanol. Then starch after a conversion back to sugar with enzymes. Cellulose is vastly more abundant than sugar/starch because it is what plants use as building material, its in the stalks, leaves, roots, etc.

Kudzu is a vine that uses other things to support it, so it is probably less fibrous and tough than corn stover or cattail tops. Kudzu grows profusely around a foot per day, has no natural enemies here in the US, and is an invasive species. Its smothering forests in the south, so its a pest that we can utilize for fuel. All it needs is water, heat and sunlight and it explodes. That is a virtually untapped resource, and only needing 15lbs to make a gallon of fuel is pretty good. A bushel of corn is something like 56lbs and you get about 2.5 gallons from it.

Gas around here is still $3.62 for 87 and $4.02 for 93. Havent needed to fill up for a while, but last I checked E85 was $3.09. The GTO is waiting for plates and insurance, and a bit of electrical repair, then its going to see some road time.

BJoe · « **Reply #28 on:** July 08, 2012, 04:09:25 PM »

Same thing happened for Woodman's spread, it had been $2.999 vs. $3.549 on Tuesday and was $3.1999 vs $3.549 today. Luckily the prices for regular closer to me are a

Is cellulosic as "edible" for living creatures as straight corn and sugar ethanol?

ohiopower · « **Reply #27 on:** July 08, 2012, 03:10:38 PM »

Things finally caught up with Speedway/Marathon in Ohio and their 60 cents spread has shrunk to 30 cents.

We'll just have to wait until guys like this figure it out commercially.

(Cleveland [TN] Man Makes Ethanol Out Of Kudzu)

<a href="http://www.youtube.com/watch?v=h7aJi-yUCJ4" target="_blank" class="aeva_link bbc_link new_win">Cleveland Man Makes Ethanol Out Of Kudzu</a>

BJoe · « **Reply #26 on:** July 06, 2012, 11:38:36 PM »

Quote from: jeepn30 on July 06, 2012, 09:31:39 PM

This 100 degree weather for the past few days does us no good here....The most accurate weather forcast predicts 0.08 inches of rain in the next 10 days here....Not good for northern Illinois and corn yield. This is when I wish we had a greater yield of ethanol from cellulosic methods.

What are you seeing out that way for prices on regular gasoline? Where I'm at ranges from $3.59-$3.79 for regular and Diesel tends to be comparable to both regular or premium gas depending on which station I pass. My last fill up at Woodmans in North Aurora was still $2.99 for E-85, but I forgot to look at what they were selling the rest for tuesday.

TD · « **Reply #25 on:** July 06, 2012, 10:46:36 PM »

Quote from: cessna on July 05, 2012, 07:57:47 AM

I'm taking the Focus up to Minneapolis for a few days and part of me wants to try E30 to see how much better the mileage is but the other part just can't be happy with less than E85.

E30 is for pussies.

I left Fargo at 70° and it was 98° by the time I got to Mpls. High for the day was 102°.

jeepn30 · « **Reply #24 on:** July 06, 2012, 09:31:39 PM »

This 100 degree weather for the past few days does us no good here....The most accurate weather forcast predicts 0.08 inches of rain in the next 10 days here....Not good for northern Illinois and corn yield. This is when I wish we had a greater yield of ethanol from cellulosic methods.

Dan M · « **Reply #23 on:** July 05, 2012, 04:57:59 PM »

Well up 41 cents today to $7.60.. I'm only 1/8th Cherokee so any rain dance I do is simply going to be spit

Not good guys.. it's times like this that we need E10 reduced to E7 or E8 to reduce the demand and pressure on corn..lower demand a couple billion gallons

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Author Topic: Price Spread ready to collapse (Read 6876 times)

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