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Omaha World-Herald Editorial: "Ethanol looks to the future"

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So at that point, why not just drop E10 down to E0?  Put it all toward higher blends.  E10 is probably the worst blend there is for mileage (and cost / mile) anyway, in my experience.  In my opinion, it (E10) has given ethanol the bad reputation that it holds with most people.

 

Just don't take away my E20.  I'm getting too good mileage on it.  ;D

 

 

 

 

Well the problem is that the Producers still need Volume otherwise it makes no sense for them to "produce".  It's much like manufacturing anything..if your market is to small then no one wants to invest in it.  So that is the problem with High Blends right now..there isn't enough Volume to make it worthwhile to do just high blends.  We have around 160 Ethanol Plants in the USA producing 14 Billion Gallons of Ethanol..to produce High Blends E85 at current Volume.. 1 ethanol plant is all we need.

 

 

 

 

SO the additive blends are the necessary "evil" to get volume high enough to make it worthwhile for Investors (Private & Gov) ..

 

 

the problem is they are gong TO Far (They Oil/Ethanol want to produce and blend as much as possible to get the "Free Money" the blenders credit before that gravy is taken away)  ..to fast and pushing up the cost of their feedstocks ..too high too fast because the Volume is right at the edge of being more than the Farmers can keep up with..(especially with the bad weather affecting the crop this year). (So the Market Makers/Gamblers push the price of corn higher)

 

 

 

 

To get the Gamblers to back off we need some legislation that can do like Brazil is doing with Sugar is needed  .. Sugar prices have soared this year ...to much ethanol and bad weather..so Brazil has legislated that to bring the price of Sugar back to "normal" levels ..to bring their Base fuel from E25 to E18..that takes the pressure off the price of sugar ..thus lowers the price of anything that consumes sugar including their ethanol...while at the same time reducing the cost for Brazils Ethanols Producer and lowering the cost of higher blend ethanol for the consumers.. So Brazils E100 price also goes down.

 

 

Moving from E25 to E18 keeps the Volume high enough that the ethanol Industry has that support..

 

 

There is no reason that here in the States we shouldn't be doing something similar..  We can go from E10 to E7..means we go from the current 14 Billion Gallons a year to 10 Billion gallons a year..still very strong volume to support the corn ethanol Industry and th eprice of corn falls to "normal" levels..which increases the Ethanol Producers Profit Margins ..Increases the Livestock, Hog, Dairy , Poultry producers profits and lowers the cost of all those products for the consumers AND lowers the Taxpayers bill for blenders credit by $1.8 Billion Dollars..that $1.8 Billion is enough to install 18,000 Blenders Pumps ..full cost of 100,000 each..

 

 

18,000 Blender Pumps simply by reducing E10 to E7 and applying the Blenders credit savings to installing the Infrastructure for 18,000 High Blend Ethanol Pumps

 

 

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Simple , common sense ..but see Simple and Common sense isn't allowed when the Corn Lobby is pushing Congress to ignore common sense..they want ALL the Volume and they WANT it NOW.. long term growth is meaningless in the face of greed

 

 

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I would think with the ethanol prices high, and corn high enough to not leave much profit margin... that supply and demand would see producers finding value in alternative feedstocks and 2nd/3rd generation ethanol... bringing on new volume to help lower the price of ethanol/take pressure off of corn prices...

 

at least that is what the economics text book states...

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with high ethanol prices and short supply (in Brazil) as well as high world sugar prices... I'd think that more countries around the tropics would be cashing in on the boom, and building sugar mills/ethanol plants like they do in Brazil?

 

Did you know that Puerto Rico since 1999 has had NO domestic sugar production?  That is right, that captain morgan and bacardi rum... made with molasses imported from mostly Malaysia!  The poor sugar prices in the 90s drove away the last remenents of the domestic sugar industry that once drove the commonwealth.

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Did you know that Puerto Rico since 1999 has had NO domestic sugar production?

Interesting that the Dominican Republic still does though. Remember a while back when the guy announced the flying school in Texas and the DR using ethanol from the rum factory for airplane fuel on this website?

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Puerto Rico gets their ethanol (for "gasoline additive purposes" ???) from the Dominican Republic, and occasionally from the US...

 

So we're shipping corn ethanol from the US, to a prime sugar country with 70% unemployment, that hasn't grown any sugar in over a decade? :confused: :confused: :confused: :confused:

 

I still say that high corn, sugar, ethanol prices should (by the econ book) be attracting new production to take advantage of those prices, which would create new supply, which would in theory help lower the prices a bit.

 

I've seen University studies (North Dakota and Minnesota) that show how sugar beets (or energy beets that are designed to produce more fermentable sugars, and not simply for table sugar production) could very easily be used to produce ethanol quite profitable...  I can't remember the stats... but their research 4-5 years ago was simply stating that "at current prices" that it was not economically viable....  well, prices now are well higher then they were 4-5 years ago...

 

I'd think that a massive beet ethanol plant built in Grand Forks ND would be a pretty good venture.  Possibly a corn ethanol plant in the greater region (red river region) could switch feedstocks, at least for the several months of the "sugar beet campaign" (harvest season)...  thereby taking some pressure off of corn prices...

 

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Ukraine Corn Exports Surge Capping Price Rally as U.S. Bakes

 

Ukraine’s corn crop will come to 16.8 million tons this season after farmers planted more seeds and favorable weather boosted yields, according to the median of 12 estimates in the Bloomberg survey. Last year’s 11.9 million tons is Ukraine’s record, according to the national State Statistics Office.

http://www.bloomberg.com/news/2011-09-02/ukraine-s-corn-exports-surge-capping-price-rally-as-heat-erodes-u-s-crop.html

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