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dan45mcc

Ethanol Now $3.50 on CBOT

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Must be plenty of corn also. My favorite ethanol plant has a message on their website that they are only taking March contract corn and no April until next week. We'll probably get a big bite in the back side sometime in the future.

Edited by cessna

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It's absolutely uncalled for. Someone is price gouging, and making big off of this. It just goes to show though, that ethanol is like oil in the sense that it is a traded commodity (albeit less prominent, but the point is true), and that ethanol is not immune from price speculation or gouging to this scale.

 

I am optimistic that we are either currently dealing with the worst, or will be soon. Futures prices fall off a cliff after this month, and fall down to $2.23/gallon by June, and fall under $2/gallon by October. This can't last forever.

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Just talked to a friend that works at an ethanol plant. Evidently some jobbers sold ethanol a while ago figuring it would be cheaper now and that the train would run. Now that it is time to deliver, they're having to bid up.

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I just hope that the folks that "take it in the shorts" when this bubble bursts... are NOT the ethanol plants.  Last thing we need is another 2008 with plants going bankrupt, being idled, and purchased for pennies on the dollar by oil companies (as discussed earlier in a different thread).

 

Also don't want farmers to take it in the shorts either, though that seems less likely. 

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