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Originally Posted by redpoint5
How does lower fossil fuel prices affect ethanol prices so drastically? Shouldn't the cost of growing the grain and distilling be less dependent on oil prices? Something smells fishy here.
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Ethanol is still mandated in fuel, there are plenty of uses for ethanol bi-products, and new uses for ethanol are being realized (bought a can of Lysol and noticed its 58% ethanol, not alcohol or isopropyl, ethanol.) Ethanol producers are profitable if they are large enough to produce at ideal quantities to incure economies of scale, but a lot of ethanol, e85, is sold at a loss as a consequence.
Im not an expert on the matter, but that is generally what is happening.