Financial Times re: Ethanol producers

[Peter]

Last Friday's Financial Times (Feb 23. 2007) ran an interesting article dealing with biofuels (and ethanol) producers being painted into their own corner by driving up the price of feedstock.

"The rise in feedstock prices, at a time when the crude oil price has dropped 25% from its peaks last summer, has put into question the economics of the sector, which relies heavily on government tax breaks and incentives.
However, investment banks are optimistic about the economics of the industryand its prospects as they expand their agricultural trading desks, as more ethanol and bioDiesel producers use commodity markets to hedge their future supplies."

Kevin Morrison, Financial Times, 2/23/07...italics added.

I'll just bet investment banks love the idea of huge governmnet subsidized companies entering the commodity markets! Anyone want to buy shares in a big faming corporation IPO? How about a junk bond issue?

Peter

[In Memory Walter K]

The latest issue of Fly Rod & Reel Magazine has a story on the environmental havoc caused by the manufacturing of Ethanol. Seems it takes thousands of gallons of water to make one gallon of Ethanol, plus the water used is clean and comes out polluted. The Ethanol plants and the corn farmers are taking the water from streams, reservoirs, irrigation systems and in the process are polluting the underground acquifers from which many humans get the water for their homes.
The stockmarket news today talked about the increase in the cost of beer as a result of the cost of barley driven by the fact that farmers are all growing corn. That, in turn has increased the cost of feed for cattle and poultry, which has raised the price of each for the consumer. The reporter reminded everyone that American consumers spend a lot more annually on foodstuffs than they do for fuel. Ethanol is driving us to inflation, polluting the environment, and lowering mileage on cars causing us to use more fuel rather than less...what a joke! Walter

[Chuck Fulmer]

There was talk in Sunday's Atlanta Journal of using peanut oil in Bio-diesel. It will really hit the fan, when people with peanut allergies die on the streets from diesel Bio-diesel fumes. This is a disaster in the making.
Chuck

[Bruce]

Walter,
It is a joke, but not a funny one.

The citizens of this country are being lead down the path to disaster by the slugs in Washington more interested in making sure their party comes out ahead in 08 than the future survival and prosperity of the American public.

It seems this ethanol debacle was decided along the same lines as the Patriot act and WMD's in Iraq.

Any information gathered was wrong, but that doesn't matter cause nobody bothered to read it anyway.

The beginning primary runs don't offer any hope for a good future when they have to insist between themselves like a bunch a school yard kids fighting in the sand box, not to play dirty.

[Harv]

Heard on news radio yesterday that the price of tortillas in Mexico went up so much that the peso took a devaluation of 2.6%.