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Corey872

Stopping all biofuels could cut grain price 20%!

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Except it IS bad

I guess you're right Dan. Oil hasn't kept up with inflation except back in 2008 when it hit $150 a barrel. I'm trying to remember, why did it go that high?

 

 

From the mid-1980s to September 2003, the inflation-adjusted price of a barrel of crude oil on NYMEX was generally under $25/barrel. During 2003, the price rose above $30, reached $60 by August 11, 2005, and peaked at $147.30 in July 2008.[1] Commentators attributed these price increases to many factors, including reports from the United States Department of Energy and others showing a decline in petroleum reserves,[2] worries over peak oil,[3] Middle East tension, and oil price speculation.[4]

For a time, geo-political events and natural disasters indirectly related to the global oil market had strong short-term effects on oil prices, such as North Korean missile tests,[5] the 2006 conflict between Israel and Lebanon,[6] worries over Iranian nuclear plans in 2006,[7] Hurricane Katrina,[8][9] and various other factors.[10] By 2008, such pressures appeared to have an insignificant impact on oil prices given the onset of the global recession.[11] The recession caused demand for energy to shrink in late 2008, with oil prices falling from the July 2008 high of $147 to a December 2008 low of $32.[12] Oil prices stabilized by October 2009 and established a trading range between $60 and $80.[12]

 

 

http://en.wikipedia.org/wiki/2000s_energy_crisis

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USA should demand real free enterprise competitiveness in China,India ,Ukraine ,Russia and Kahzastan

Free market competion in those larde ,still controlled ex comunist markets would double corn production and cut corn prices in half

Also the wide cultivation of SWEET SORGHUM in the USA and the rest of the world would double ETHANOL production lowering production costs and price s ,which would certainly be a great incentive to consumers to buy FF cars or use lower ethanol mixed gas(20,30%) leading to a big decline in oil imports!

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Teresa,

 

I have long wondered how agriculture worked in the "post soviet eastern block" countries (Ukraine, Russia, Kazakhstan).  Do you have any inside information?  I know that their farms WERE "collectives" (aka "state owned farms that had been expropriated from their rightful owners in the 20's or so)...

 

We heard all about the privatization of former eastern industries and energy... but little about the fate of post soviet agriculture. 

 

I was assuming the land was all privately held in one form or another... assumed that the peasant farmers, and farming corporations (or what ever they have) had free choice in what they planted...  I honestly don't know, I've just been "assuming" this for the last 20 years... :-[

 

(my wife's decedents were all Germans from Russia...  Odessa region of what was then called "South Russia" or "New Russia"... Now the "Ukraine")

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with Brazil's recent (last 2 growing seasons) streak of drought conditions leading to poor sugar cane harvests (which caused a spike in sugar prices, which meant that more sugar was being diverted AWAY from ethanol production... hence the spike in ethanol prices down south...)...

 

I'd think that they should SERIOUSLY be looking into having a serious percentage of their "sugar crop" being planted to sweet sorghum as opposed to sugar cane.  The sorghum is MUCH more drought tollerent then is sugar, and would provide a natural "hedge" against drought conditions.  Though it wouldn't produce quite as much per acre as sugar... in a drought it will produce MORE per acre.  Sweet sorghum is not "dual purpose" though, in that it can not be used for making "table sugar" and ethanol...  I'd think having 20% of the crop in Sweet sorghum in Brazil would be a nice hedge.  Down there they can grow it and harvest it, as well as process it with the same equipment, infrastructure and practices as the sugar cane... so it is a "drop in crop"... so to speak.

 

For us Sweet Sorghum could provide a similar "hedge" not so much against drought, but against a spike in corn markets.  Though it would also serve as a drought hedge in the corn belt.  If there were to be a serious drought through NE, IA, MN and IL... (major corn belt and ethanol belt)... it would cause a shortage of corn, and would send ethanol prices through the roof.  If every ethanol plant had enough sweet sorghum in their close by area to account for 100% of their production during the 2-3 month harvest window... that would mean that they would all be requiring 15-25% less corn.  Since sweet sorghum yields more ethanol per acre then does corn, that would mean that there would be more corn on the market, then there would be land taken out of corn.  With drought conditions, sweet sorghum is not as adversely affected as corn is... so they would be even more better off...

 

Lets diversify folks... both corn ethanol in the US, and sugar ethanol in Brazil... we can't put all our "ethanol eggs" in one basket so to speak.

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Sugar cane is sort of a perennial. It grows for a few years, 9 I think, then they cut it down/dig it up and plant new. its not like corn where it goes in every year.

 

Remember, there are other things we can make fuel from. Not just corn and sugar cane.

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OK, I am a newbie to this site....I don't tweet, twitter, or faceoff...this is the 1st blog I have ever registered on because I am so pissed off about the obsfucation and misdirected info on Alcohol...

    For the past 5 years, I have run e85 in ALL my vehicles, including my 1970 fiat spyder(carburated)  ZERO problems...We need to logically discuss this perfect fuel because it is PERFECT.  No emissions, made in the USA,  renewable, non-toxic, and made cheaply from anything with a high starch or sugar content....The model A ford ran kerosene, alcohol and toxic gasoline with a column-mounted switch, and we discuss whether it will damage our new cars or not!?!?!?  The toxic fuel crooks carefully manage this information, because it directly competes with toxic fuels gallon to gallon.

    Our family runs a corn and bean farm in Minnesota, and corn is used only because there is so much of it..It is easy to extract sugar from corn, 94% of which is fed to ANIMALS.  Corn ethanol, is currently being made for under $2/gallon.  (see wholesale price in wsj) Corn ethanol plants were built with taxpayer dollars, then bankrupted by the toxic fuel suppliers ("e85 will damage your engine") purposefully,  and then after it was mandated to be put in gasoline, were bought and now controlled by Valero and two other big refiners of toxic fuels. They are now attempting to control production and access...

    Just think about it a little deeper...I call it clever business practice.

Nothing more, nothing less....they do not want you to be able to buy it, because it is cheaper, cleaner, and superior in every way to toxic fuels...

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welcome to the site!

 

You are correct.  Oil does fear people having choices in their fuel, especially when one of those choices is better AND cheaper then theirs...

 

there are no dirty tricks they will not stoop to, having done them for 100+ years, they are well practiced at it.

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