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  • Are We at the Bottom of the Ethanol Barrel? [View article]
    Author fails to mention co-product DDG's resale value. Author also neglects blenders tax credit of roughly $.50 which shifts demand curve.

    Most ethanol producers are actually at or over 2.80 gallons/bushel. The actually driver behind this years corn crop will likely be acreage allocation shifts which is probably going to be tough for corn due to a wet spring and high fertilizer costs leading to more soybean acres.

    The weather could significantly impact price as the "slack" in the grain markets is gone and supply issues could lead to an upward inflection point in price. Risks abound on the corn side of the equation.
    May 21 10:34 am |Rating: 0 0 |Link to Comment
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