Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : $2 or higher gas - Can ethanol make a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (2207)	1/22/2007 11:29:46 AM
From: richardred	Read Replies (3) \| Respond to of 2801

>Has the stock market already already discounted the higher price of corn and lower energy prices? John IMO it has. I believe corn prices are at or near peak. The lowest cost producers will still make a profit on much lower margins. IMO-Coal fired and natural gas powered plants will enjoy some stability because of adequate supplies and pricing. I believe farmer are inclined to plant more corn this year because of the high prices. The economy is the biggest factor. Housing and energy sectors have already enjoyed past record profits. If the benefits of lower energy can keep the economy moving at a steady pace. It can bring in benefits to other sectors who haven't benefited fully. The airlines are benefiting right now. Chemicals and paper are starting to see some energy relief. Autos need relief badly. Retail should be somewhat steady I think. If the sector rotation starts to bring strength in the economy. Pricing should be better for ethanol because oil will strengthen. The ethanol infrastructure has enjoyed stunning growth over the last couple of years. From what I see going on now in ethanol. I believe we are on or way to starting the next stages of ethanol. Ethanol from biomass and a shakeout of high cost producers. who can't keep up to date. IMO-Done the road we can see high cost producers switching over to to new feedstock supplies and better energy wise driven plants. Eventually reducing the stress on corn. That's my scenario anyway. I'm not an economist. I could be wrong. <G>