WILLAg Notes

December 14, 2014

Ethanol Production Profits Dim as Gasoline Prices Plummet

The magnitude of the decline in crude oil and gasoline prices has taken nearly everyone by surprise. NYMEX nearby crude oil futures this week touched $60 per barrel, almost $50 less than peak prices last summer. This is a major economic event with potentially far-reaching impacts for biofuels markets. We examined some of these impacts in two recent farmdoc daily articles (November 12, 2014; December 4, 2014). Our conclusion was that current high ethanol prices relative to gasoline prices, as illustrated in Figure 1, might slow the growth in domestic ethanol consumption, but would not likely result in consumption that is less than the 10 percent blend wall.


December 04, 2014

Growmark Energy Analyst Harry Cooney on Pricing Fuel Needs

Each Tuesday during the Closing Market Report we talk with an energy analyst. This week Growmark's Harry Cooney turned his attention to OPEC, the dramatic drop in the price of a barrel of crude oil, and what to do about pricing 2015 fuel needs. You may listen to the conversation here. 


November 25, 2014

Corn Used for Ethanol Ramping Up

The price of ethanol has rallied over the last month, spurring greater production. If the pace were maintained for the marketing year total consumption could push 5.4 billion bushels says K-State Extension Ag Economist Dan O'Brien, with the caveat that this is not likely to happen. Still, as you'll hear, he concedes it is possible.


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