sw ontario | doathlon - 1/25/2021 20:22
Keep in mind that most of the corn being hauled in was contracted for much less. So the demand destruction won't occur for awhile regardless of how high prices go.
If ethanol plants operate like a soy crush plant or feed mill there cash contracts are off set by sales at the same time so there is not windfall profits as without hedging sales and owning a lot of physical a sharp downturn in the market would break them....
Over the yrs. some farmer owned co-ops have tried the 'its cheap,buy it and sit on it until it goes back up' deal and it broke many....read Jake 1979 in thread above this...its a margin business |
Ethanol plants have grinded mostly cheap corn.
