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dan45mcc

National E85 Price Spread 20%

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Unfortunately the states I frequent the spread is flat or dropping.

 

I have a little pipe dream that the spread will get high enough that people start asking me how to convert their vehicles....

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my local station (Kum & Go) yesterday shot their gas prices up.  E10 (plus, which is the cheapest here in Nebraska) had their prices go up 12 cents in one day, up to $2.79, while e85 remained constant at $2.09, where it has been pretty steadily for 3-4 weeks now...

 

A good sign!

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I have talked to some board members of ethanol plants. Dec 2009 was a very good month. Jan. and Feb. had profitability decline and now with these low prices plants are back to just barely profitable. If we want to sustain these low ethanol prices we really need to get corn back down to $2 a bushel. The only problem with that is John Deere and the crop input people might feel the pinch.

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as a born and raised Nebraska farm boy (dad and one brother still farming), I have a hard time "wishing" for $2 corn. 

 

I have dual allegiances split between the corn farmers and the ethanol industry.  $2 corn would completely destroy the American farm industry in a quick hurry.  No one would expect corn prices to stay at the peak (wasn't it up to $7.80 for a brief time in '08?), or even at a very high $5... but $2 corn for any extended period of time would bankrupt nearly every farmer, farm supplier, farm bank, farm community, and farming state IMHO. :(

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I would suspect that as the price of oil/gas shoots up (as it is assured to this summer), there will be an increased demand for ethanol, as more people switch to e85 (hopefully), and blending increases... (and I know we are getting up to that blending wall). 

 

Basic economics would dictate this, and would also dictate an increase in the price of ethanol.  As long as the all crutial price spread continues to grow (ethanol not going up as much as gas) this is good for the ethanol industry.

 

As a supporter of both the corn/farming industry, and the ethanol industry, I'm hoping for an increase in the price of corn, ethanol and oil (in that order also...)

 

The higher oil gets, the more people will be driven towards ethanol, driving up demand for ethanol.

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Husker, I was kinda kidding about the $2 corn since it would really affect my lifestyle also. Its just that cheap ethanol and expensive corn just don't work for very long and the oil companies know this. There is really no good reason for gasoline to be going up and ethanol down right now.

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gotcha.... that makes sense...  I was hoping that you were not being literal...

 

We just need for ethanol to be "cheaper" (then gas), but not "cheap" (no profit in producing)... for the industry to rebound from teh desaster that 2008 caused.

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gotcha.... that makes sense...  I was hoping that you were not being literal...

 

We just need for ethanol to be "cheaper" (then gas), but not "cheap" (no profit in producing)... for the industry to rebound from teh desaster that 2008 caused.

 

I would think $3 corn would work-- but better yet would be corn where it is and ethanol prices creep just a little due to E85 selling like hotcakes LOL.

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