SkyPup
Elite Member
- Joined
- Dec 3, 2003
- Messages
- 3,079
- Location
- North Central, Florida
- Tractor
- Kubota L-39 GST TLB, Kubota L3130GST, Massey 1030 HST, Kubota ZD-21 ProDecK, Two Euro VW TDIs
Wow, oil stocks and crude oil futures are all crashing way down....
Not only that, but alternative bio-energy sources like biodiesel and ethanol are being hit even harder, forcing them to not even be able to make a profit (they really wouldn't ever be profitable without the taxpayers giving them money but this just makes it impossible even with all the taxpayers money going down the drain), even with the huge government subsides they receive for every gallon!
"Since Jan. 3, ethanol futures contracts on the Chicago Board of Trade have dropped 24.9% to $1.87 a gallon yesterday. Crude prices fell 13.4% in that period. Ethanol is off 55.8% since its peak price on June 20. On average, according to Goldman Sachs, corn represents 60% of the variable cost of an ethanol plant, and power costs including natural gas represent 25%. Corn closed at a 10-year high yesterday of $4.1225 a bushel on the Chicago Board of Trade, and prices have doubled over the past 12 months."
"Archer-Daniels-Midland Co. is the largest ethanol producer based on gallons produced. Large grain producers in the Farm Belt, like ADM, have made investments in part based on high oil prices."
"According to Credit Suisse research, ethanol makers were able to pull off a profit of 86 cents a gallon in the middle of the summer when oil was around $70 a barrel and corn was just $2.50 a bushel. Today, with oil near $50 and corn above $4, they incur a loss of 21 cents for every gallon they produce."
The new super huge soybean plant and shipping port in Brazil that CarGill built to export soybeans to the USA after stripping, denuding, and burning over a 100,000 square miles of the Amazon jungle and forest for planting soybeans is sitting idle.....
Not only that, but alternative bio-energy sources like biodiesel and ethanol are being hit even harder, forcing them to not even be able to make a profit (they really wouldn't ever be profitable without the taxpayers giving them money but this just makes it impossible even with all the taxpayers money going down the drain), even with the huge government subsides they receive for every gallon!
"Since Jan. 3, ethanol futures contracts on the Chicago Board of Trade have dropped 24.9% to $1.87 a gallon yesterday. Crude prices fell 13.4% in that period. Ethanol is off 55.8% since its peak price on June 20. On average, according to Goldman Sachs, corn represents 60% of the variable cost of an ethanol plant, and power costs including natural gas represent 25%. Corn closed at a 10-year high yesterday of $4.1225 a bushel on the Chicago Board of Trade, and prices have doubled over the past 12 months."
"Archer-Daniels-Midland Co. is the largest ethanol producer based on gallons produced. Large grain producers in the Farm Belt, like ADM, have made investments in part based on high oil prices."
"According to Credit Suisse research, ethanol makers were able to pull off a profit of 86 cents a gallon in the middle of the summer when oil was around $70 a barrel and corn was just $2.50 a bushel. Today, with oil near $50 and corn above $4, they incur a loss of 21 cents for every gallon they produce."
The new super huge soybean plant and shipping port in Brazil that CarGill built to export soybeans to the USA after stripping, denuding, and burning over a 100,000 square miles of the Amazon jungle and forest for planting soybeans is sitting idle.....
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