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dan45mcc

Oil prices soared to $100 a barrel Wednesday for the first time ever

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Thanks for all your answers guys.   I am glad that I added a small percentage at a time.  The Cruiser just cruises "no pun intended" like she is gliding on air.   Just waiting for the new station a mile away to open up.   We haven't had a new station here in over 10 yrs.   If they are on the ball at least one pump will be E-85 or a blender.

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Larry, I think you're right.  I was on one of those forums back when everybody was negative, and it was part of the reason I left.

 

Unfortunately, there's another aspect to this that may be transparent to you guys.  I was talking to someone the other day who does a lot of business with farmers.  Apparently, the cost of their fertilizer and feed (hay etc) is going up, offsetting the high price of corn.  They blame it on ethanol.  I think it's increased fuel prices and a weakening dollar, but try convincing them of that.  It seems like whenever something goes wrong around here, ethanol is the first thing to be blamed.

 

Maybe it was just the guy I talked to, and it could very well be, but we may have some unexpected resistance from the last ones we'd think; the farmers themselves!

 

Sorry for straying off-topic.

 

Anyway, $100 barrel oil is not good news for anybody.

 

Oh, and having been at the Iowa Caucus last night... yes, everyone is braindead, furball.

 

Oops, there I go off-topic again!  :D

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Rusty- there has been so much consolidation in the fertilizer industry since the 90's that I truly believe they were barely able to keep up after being surprised by a whole world jump in demand. The nitrogen facilities started closing in the 90's and Russian urea/ammoniun nitrate moved to fill the void. As food prices respond to demand from growing countries economies, I suspect that ferilizer supplies got pinched- high prices generally cure supply problems but energy costs to produce nitrogen will keep costs up. You are right in that some farmers will blame ethanol, some will remain silent, and others will cheer but it will not be a unified base of support. Here in Wisconsin, Dairymen generally raise their own corn and thus are more impacted by fuel and fertilizer (but use less fertilizer due to manure availablity)--this puts them as winners over the California/ New Mexico Dairymen who have water issues and purchase corn. It is interesting to note that dairies had moved to the SW but now the sustainablity is back home in Minnesota, Wisconsin, and New York where rain is adequate.

 

Just my opinion :)

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Dairies are going up here also because of distillers grains. There are people putting up hog houses on 4 acres deeded to them by the land owner. In return the land owner gets the manure---that's all. This last spring the elevator here bought a lot of potash from up in Canada as there was talk of a strike. Little did they know the dollar was going to do what it did---looked really good by fall. I read an article where a guy said to hedge natural gas when it dips to cover nitrogen costs.

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