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

To: richardred who wrote (2314)	2/15/2007 11:52:13 PM
From: creede	Read Replies (1) \| Respond to of 2801

Thanks for the response. I'm learning as I go. I called IR for SORD today for guidance, and they told me what you just said..... that the price of corn has screwed things up for them. They don't even sound certain if they are going to build their plant or not, because it's cheaper to import and resell the ethanol than to make it with the price of corn. They are not vertically integrated at all, and the margins are only about 10% at the moment. And that's not good.... unless you are invested in corn I guess! GodBless-NoDoubt creede

To: richardred who wrote (2314)	2/24/2007 9:18:51 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 2801

re: At worst, agricultural analysts said, some ethanol plants are operating in the red, but some analysts said margins for ethanol producers overall are anywhere from 60-70 cents a bushel to upward of $1.40 on each bushel of corn. at 2.7 bushels/gallon that's a profit margin of $1.62-(3.78)/gallon. Gas is about $2.40/gallon (high side), at least around here. Subtract out the profit and you have anywhere from $.78 to -$1.48 to buy, process, and distribute 2.7 bushels of corn to make a gallon of fuel that is calorically inferior to gasoline. Either the analysts are full of s$#t, the taxpayers are heavily subsidizing this folly, or both. Most likely it's both.