Dynosor, the whole point of the Ethanol hype is to get a viable alternative to oil on the way.
Now that someone has given the green light and indicated that this is good, the farmers are bending over backwards to convert the food producing lands to corn growing, nothing to do with global warming, but sheer economics, but now the price of corn is skyrocketing and that makes Ethanol a joke as a replacement fuel.
When the ball started rolling the corn was being sold as food and on that cost structure the conversion factor was costed, but down the track there crept in a lot of side issues that had to be addressed in the only way money borrowers know how, and that is to pass the cost onto the consumer, commonly known as inflation.
The farmers took out big loans for land aquisition and bigger and more sophisticated tractors etc, plus they now had to buy huge stocks of seed to actually get the corn, which originated from the corn seed growers who pushed the price up in anticipaton of a rich harvest, based on the envisaged returns that the investment gurus were screaming about.
This pushed the cost of the end product up, so now the Ethanol is costing more to produce.
All of a sudden the miracle on Wall street is looking to be a mill stone around the farmers necks, especially when it becomes obvious that there is a product they have sweated and worked to produce that looks like might not even get off the ground, (Pun intended).
So what to do with all this overproduction of now overpriced wheat?
Sell it to the Chinese! What brilliant thinking, but they no fooley, bl##dy plice too high.
Bubble burst, end of story, don't mention corn at the food table, not while scrag end of meat being gnawed on.
Ian.