Election Year Gas Prices

you have a link for that?
dont get me wrong, the drought is indeed a huge factor this year. probably why it went from $5 a bushel to $8 in a months time. . but the subsidies for ethanol production is the driving pain in the ass for corn buyers in the regular market. i know, the buying and selling of corn is part of my livelihood. i was talking to a farmer the other day from iowa who, in that past years has been selling all his crop of his thousand acre farm for only ethanol production because of the great subsidies he gets out of it. and because of the little regulation that industry has on a common corn mold called aflatoxin.

.....

 

I believe it's more than a one year drought thing.

about ten years back, farmers started growing & selling their corn for ethanol instead of for feed and public consumption. It was more profitable for them because the govt paid them to do so.

I know a man who made a bundle investing in the scheme back in 2004-2005. then he spent it all on real estate and had his ass handed to him a few years later. true story.

 

china owns their own oil saudi arabia own their oil we do not foreign companies can come in and pump our oil and sell it on the world market capitalism is great and all but when it comes to oil we need a little socialism share the gas brother

 

I don't, I was watching the boob tube. I am starting to understand a little more now. I was also thinking that because the demand for corn was climbing (ethanol demands), the growers were producing more corn as a result. I have never bought ethanol before, don't know where to buy it or why, nor have I seen the price of an ear of corn change much around here in the last decade that I can remember.

 

I am fairly close to this for a couple reasons, the biggest being that my largest customer produces alcohol, and to do that they buy about 400,000 lbs of corn a day to run their three distilleries. Here is what I gather from them. At $6.75 per bushel the ethanol companies are not profitable, already this year compared to last year there has been about 1.7 billion gallons less produced. At current corn prices that number is going to do nothing but get larger. The biggest reason for the increase in corn prices right now is not because of ethanol, it is because of the yield, and the yield is a direct result of the drought. Currently or within the last week the USDA predicted a decrease in yield from 166 bushel/acre to 146 bushel/acre. At 90 Million harvest acres that is almost 2 billion bushels. The prediction for final yield numbers is being speculated to be more like 125 bushel/acre, so another 2 billion bushels out of market. All this is a direct result of the horrendous lack of rain the corn belt has received. There is thought that the Fed or USDA will even step in and temporarily ease ethanol mandates and also limit exports in the coming months, as we wont feel the effect of this harvest year fully until fall.

 

Now I find out I buy it all the time......I never look at the pump, or the price. 7% ethanol on every gallon? Well whuddayaknow.

 

what we deserve is a decade worth of free oil from Iraq, to repay us for the blood & treasure spent to give them their freedom.

seems fair enough to me.

 

that's a shit ton of booze.

 

Hum, I don't remember them asking us to come blow up their country.

 

It is but they supply Skyye and Beam so that takes a lot!

 

I'm sure they would be much happier under Saddam Hussein and his murderous sons.

 

I would agree

 

Wasn't it all about WMD's? lol. or maybe it was all that oil we got.. Why we choose who gets saved and who doesn't is beyond me. Rwanda was going on at the same time but we did nothing to help there. There are no legitimate reasons for entering Iraq, other than finishing what Bush 1 started but never finished. I still think Iraq was a bad idea.

 

A debate that will never end in our lifetimes.

And while the intentions may have been noble...the blood and treasure probably were not worth it.

I don't think we got any oil from Iraq....that was my original point.

 

sarcasm,........

 

yes

now, when can we expect our free oil?

 

Our own government and big oil would still charge us through the nose even if they got it for free. They would make up something about increasing costs of production or they'd make up some story about a shortage or they'd run a story about Iran threatening to do something bad as justification for $5 gas. The general public would complain at first, but then would go quiet after a little while just like we always do.

 

sadly a lot of truth in this post

 

CONGRESSMEN HOLDING THURSDAY PRESS CONFERENCE TO URGE EPA TO REDUCE RFS
Several congressmen plan to turn up the pressure on EPA to reduce the renewable fuels standard (RFS2) in light of recent drought conditions.
Reps. Bob Goodlatte (R-Va.), Steve Womack (R-Ark.), Mike McIntyre (D-N.C.) and other congressional members are holding a press conference Thursday morning "to urge the EPA Administrator to take action to reduce the RFS to help ease corn supply concerns and protect American consumers, livestock producers and the economy," according to a media advisory issued this morning.
The advisory also noted that more than 120 bipartisan members of Congress have signed a letter to EPA, requesting a reduction of the RFS for 2012. The letter will be sent on Thursday.

 

Well, I ended up being wrong about the 2012 election time gas prices. I thought for sure that the price would go below $3 per gallon in California like it had for the 04 and 08 elections. Basically a fake shortage due to fuel refinery shut downs in Southern California caused the prices to shoot up to about $4.70 per gallon. By election day the price was back down to $3.70 per gallon. So the price did drop $1 per gallon, but it also shot up $1 per gallon before that.