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Ethanol producers aren’t having a good summer, as record corn prices and sluggish gasoline...

  • Friday, July 27, 2012, 10:36 AM ET
    Ethanol producers aren’t having a good summer, as record corn prices and sluggish gasoline demand squeeze profits. Valero (VLO) and others have idled plants since mid-June, and Archer Daniels Midland's (ADM) ethanol margins have eroded to a loss of more than $0.20/gallon. Ethanol production in the week through July 20 fell to 796B bbl/day, hitting a record low for the second straight week.
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This news story has 7 comments:

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    The devastating drought in the US is causing a shortage of corn, which will eventually mean much higher prices for poultry, eggs, dairy products and pork. Higher world wide prices for corn and soy beans will mean real hardship in the developing world. You'd think this might be a wake up call for Mr. Obama to approve the Keystone XL pipeline, whereby oil from Canada and North Dakota could be transported economically to the refineries on the Gulf coast. Then we could use the corn crop for food, and use gasoline and diesel for our motor fuels. Food should be used for food, and fuel for fuel! The ethanol industry, which would not exist without taxpayer subsidies, should be shut down. We should not be burning our corn to drive around in our SUVs.
    27 Jul 2012, 10:46 AM Reply Like
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    This is a market -- not political -- forum. Keystone XL is being built.
    27 Jul 2012, 03:06 PM Reply Like
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    Yet another sign that ethanol (at least corn based) is not a sustainable solution. The idea had good intentions, but it doesn't work in reality.
    27 Jul 2012, 10:48 AM Reply Like
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    There has to be a rule somewhere in the World Book of Economic Survival that says: If you have to subsidize it to keep it alive, you don't need it.
    Solyndra, Solar one, and Abound Solar, all sucking up millions and millions from on the Taxpayer's tab.
    27 Jul 2012, 10:57 AM Reply Like
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    Where's all the excess corn and soybeans from all the other years when there were bumper loads of both crops? Where did it go? China!
    27 Jul 2012, 12:16 PM Reply Like
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    And yet President Obama is campaigning in Iowa this week and telling all the farmers HE is responsible for higher land values and record commodity prices. Wonder if he will also take the blame for the higher food prices when all of this impacts the supermarket!
    27 Jul 2012, 12:40 PM Reply Like
  •  
    So when do rising ethanol prices offset falling fuel prices triggering a rise in gasoline prices?
    27 Jul 2012, 02:06 PM Reply Like
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