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dan45mcc

Ethanol Futures.. really important week IMO

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Went to the ethanol plant meeting last night. You can look at charts all you want but there are so many different deals and variables that I'm not sure the charts really tell the story. I happened to sit next to the guy that used to market the ethanol for this plant and is also an investor. There has been some big changes in management and he no longer markets for this plant but still does for many other plants so knows the ropes. He asked where the 43 cents a gallon profit or in other words $17 millon in lost revenue for the year went. Were they that poor at marketing or???????? something funny going on. Also found out there was some $5 ethanol sold not long ago because somebody needed it really bad. Like he said, "this is America where anything can happen".

 

Cessna I don't belive anyone paid 5 to put the ethanol in actual blending..... I do believe that 5 was paid to push the market higher so they could sell into a market they were working to push higher

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I do believe that $5 was paid to push the market higher so they could sell into a market they were working to push higher

 

Now that's one conspiracy theory I believe in.... :)

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Cessna I don't belive anyone paid 5 to put the ethanol in actual blending..... I do believe that 5 was paid to push the market higher so they could sell into a market they were working to push higher

Yeah I believe in conspiracy too but he said it was about the train being slow to deliver actual product. He said the crude oil unit trains are what the RR really likes and ethanol comes second and then they don't want to mess with anything but unit trains of ethanol. If you're a small plant you were in a bad way. When it comes to conspiracy, he indicated there was more chance of that the way the ethanol plant marketed our ethanol for such a cheap price and maybe a few individuals got to split the cream.

 

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Whoa, now how's this for a drop?!?

Morning Aaron..

 

Hard to believe a month ago we were heading towards $3.00  ..  Prices are looking good for the summer, Price Spreads have already started widening but wonder if some Retailers will keep price spread on the narrow side to simply recoup what they lost 

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That is what I'm predicting....  they typically are very quick to jump the price up the second they smell a commodities price jump...

 

But when prices are going back down.... they wait till they sell off what is left in the tank to recover their losses.

 

Quick to go up, slow to go down. 

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