tag:blogger.com,1999:blog-12897315.post113979686782745458..comments2024-03-28T09:54:55.115-05:00Comments on Dad29: Ethanol's Cheaper, Eh?Dad29http://www.blogger.com/profile/08554276286736923821noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-12897315.post-1139880947069676612006-02-13T19:35:00.000-06:002006-02-13T19:35:00.000-06:00I just looked at the futures markets to compare ga...I just looked at the futures markets to compare gas and Corn-A-Hole at the same level, and the news is even worse. Unleaded gas for March 2006 delivery closed at $1.4290 per gallon on NYMEX, while ethanol for March 2006 delivery closed at $2.730 per gallon on CBOT.<BR/><BR/>Rounding to the nearest penny, that makes Corn-A-Hole $1.30/gallon more expensive than unleaded gas. Expressed as a percent, that's 90.9% more expensive for Corn-A-Hole.steveegghttps://www.blogger.com/profile/12374669417627943743noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-1139875412462728852006-02-13T18:03:00.000-06:002006-02-13T18:03:00.000-06:00I wish they'd leave it up to the free market. It's...I wish they'd leave it up to the free market. It's been that way for years. I remember, if you wanted ethanol, most stations had it in the mid-grade fuel. There are a few stations where I live that refuse to buy it. I'm glad as my brand new car loses 5 mpg on hwy and 3.5 in town if I have to buy ethanol. Where are my savings?Billiamhttps://www.blogger.com/profile/15489132492383133253noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-1139871305968802122006-02-13T16:55:00.000-06:002006-02-13T16:55:00.000-06:00Nobody will KILL THE SUBSIDY.Bush won't. Farm-sta...Nobody will KILL THE SUBSIDY.<BR/><BR/>Bush won't. Farm-state Pubbies won't. State can't.<BR/><BR/>Greed and corruption? Yup.Dad29https://www.blogger.com/profile/08554276286736923821noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-1139870381315691752006-02-13T16:39:00.000-06:002006-02-13T16:39:00.000-06:00The blender gets the subsidy at 50 cents per gallo...The blender gets the subsidy at 50 cents per gallon. So the blender can buy the stuff at $2.70 and it is still cheaper to him than gasoline by a nickel. Eliminate the subisdy and the price of Ethanol would drop below that of gasoline otherwise the blender would not buy ethanol and mix at a loss. The details are important. So you are correct it is all about demand but there would be no demand at $2.70 per gallon if not for the subsidy. KILL THE SUBSIDYAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-12897315.post-1139854208312653722006-02-13T12:10:00.000-06:002006-02-13T12:10:00.000-06:00RR: BTW, it's demand that's driving the price, no...RR: BTW, it's demand that's driving the price, not the subsidy, which OUGHT to bring the price down, not up.<BR/><BR/>But you're right: this whole thing is a string of "hide-and-seek" games with price, supply, and ADM's bottom-line.Dad29https://www.blogger.com/profile/08554276286736923821noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-1139848807912686902006-02-13T10:40:00.000-06:002006-02-13T10:40:00.000-06:00The radio ads imply fuel costing 93 cents a gallon...The radio ads imply fuel costing 93 cents a gallon, like gasoline in Saudi Arabia.Terrence Berreshttps://www.blogger.com/profile/02867275234105879358noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-1139847856762944862006-02-13T10:24:00.000-06:002006-02-13T10:24:00.000-06:00Anytime you subsidize the purchase of something yo...Anytime you subsidize the purchase of something you drive up market price (due to artificial demand) Eliminate the federal subsidy. At these prices, no one needs a subsidy for ethanol. Corn is cheaper than ever and methods for producing ethanol have improved dramatically. Ethanol should be accessible to everyone but the subsidy should be eliminated also. The subsidy ethanol receives is a good reason oppose any mandate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-12897315.post-1139836330129645162006-02-13T07:12:00.000-06:002006-02-13T07:12:00.000-06:00Like the natural gas argument, it's not about the ...Like the natural gas argument, it's not about the cheapness. It's about forcing a monopoly that can't possibly cover the market down our throats to limit our standard of living.steveegghttps://www.blogger.com/profile/12374669417627943743noreply@blogger.com