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Hybrid Vehicles Ethanol - E85 FlexFuel The Inconvenient Truth About Ethanol
921 messages, Last post on Oct 07, 2009 at 10:53 AM
You are in the Ethanol - E85 FlexFuel Forum. Your Host is pf_flyer
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Replying to: gagrice (May 14, 2008 6:00 am)
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Replying to: bpizzuti (May 14, 2008 6:32 am) |
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Gagrice did none of those statistics make any sense to you. The gorilla in this room is OIL!!! Ethanol only took 3.3 billion bushels of the 13.3 billion we produced. There is more corn available right now than there was at this time last year. Soybeans are also a major cause of the rise in corn prices, beans are at an all time low with the price being driven everyday by the crude market which is directly correlated to soybean oil. Oil is the driver behind this rapid increase. Ethanol has had a slight increase but use yesterday as an example. Oil was up $2 a barrel, Soybeans were up 34 cents a bushel, corn was down 9 cents a bushel. Look at that nice correlation, ethanol has no impact right there, soybeans are food which is DIRECTLY influenced by the crude market.
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So what that corn was down 9 cents YESTERDAY? Take a look at the chart of corn futures over the last year from the Chicago Board of Trade
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Replying to: nascar57 (May 14, 2008 8:23 am) I find it shameful and embarrassing that our government continues to promote and support its use on such a grand scale. |
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Replying to: nascar57 (May 14, 2008 8:23 am) What crops were not planted to make way for more corn? I know fields in the Imperial Valley of CA are growing corn where they used to grow lettuce and other vegetables. Good for the farmers bad for the consumers. From your lack of response you must think that the price of oil going up since the ethanol mandate is just coincidence. I think we are caught in a battle between Big Ag and Big Oil. We are just the poor slobs that are paying the price. Also soybeans are being used for biodiesel. Though last I read they were too expensive to use. There is no mandate on biodiesel so the market sets the price, not Uncle Sam. When we come up with a feedstock for ethanol that is not mandated and is cost effective let me know. When Congress lifts the tariff on Brazilian ethanol I will know they are getting serious about alternatives. |
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Pf Flyer I am so glad you know how to make a graph. If you do not understand market drivers behind this dont just look at a picture and blame it on Ethanol. There are so many other factors that caused corn to increase by $2 a bushel. First off Brazil has not had the weather that they would like down there, Europe and Australia have had terrible droughts which has increased the feed use for corn due to the fact that wheat touched $20 and steered feeders away from wheat and into more corn. If you want to talk about inflation influencing food prices you are terribly un informed if you think oil has nothing to do with this. Oil has directly impacted fertilizer prices, chemical prices, seed prices, and most other farm inputs. Ethanol has helped the demand side of the picture but the crude market had had MUCH more impact on the consumer side. Think about a loaf of bread, the farmer's share is less than the cost of the wrapper. Ya know what factors the cost of that wrapper, YEP OIL!!!!!!! Gagrice my lil no-minded friend, the ethanol mandate has been around before 2007. Also the blenders credit for ethanol has been decreased by 6 cents a gallon. Ethanol also brings down the price of gas to the consumer by 10-15%, if you have any idea where to even check the price of ethanol, you will see it is trading in the mid 2.40's range while RBOB gas is 3.12-3.15. Gagrice also you complain about the POOR consumers. You know what, the increase in crude prices since 2001 is equivalent to a 45% increase in the income tax. Hmmm, I wonder what is really putting the pinch on. You people simply amaze me that you are so un-informed, gotta love that California crowd
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Also my little friend Gagrice, Soybeans are NOT being driven by bio-diesel. It is again major weather concerns in the South African region along with record LOW carry-out numbers that the US is currently experiencing. As the price of crude climbs, the bushels of beans used for Bio-Diesel increases greatly, since it makes Bio-Diesel that much more competitive. If you people really want commodity prices to go down, Oil is going to be the main commodity to recess into a much lower trading range, if that doesnt happen, Higher commodity prices will be here to stay for the time being. Put some market driven thinking to work in your arguments people!
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Replying to: nascar57 (May 14, 2008 4:39 pm) Yes it has. The energy bill of 2005. I think you really need to do more research before you set yourself up as an authority on a subject. Take a look at when oil took a rocket ride up. It was under $40 per barrel when the ethanol mandate went into affect. You are right the increased demand on diesel and fossil fuel based fertilizers have an affect on oil prices. So does the government thinking they can bully the oil producers by making fuel from corn. Just how much corn have you raised on your farm. I raised a lot and it was not worth the diesel used to plant and harvest it from 1976-1980. Not to mention the interest on seed and fertilizer at 20%. So I do know what farming is all about and I feel for the farmers. The ones that were run out of business in the late 1970s by Mega Ag corporations. The same ones that are reaping a windfall profit at the tax payers expense. When you move out of your utopian ethanol cocoon maybe you will see the real inconvenient truth about corn ethanol. Oil rise from 2005 ethanol mandate: http://zfacts.com/p/196.html |
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Hybrid Vehicles Ethanol - E85 FlexFuel The Inconvenient Truth About Ethanol
