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1 posted on 01/16/2012 10:56:29 PM PST by Razzz42
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To: Razzz42

So many inaccuracies, so little time.

Brazilian ethanol isn’t “sugar based” - it is cane based. All fermentation of ethanol starts from sugar(s). Corn has sugars, as do other grains. When barley is malted to make whiskey, they’re doing it to gain access to the sugars.

Next, the import tariff wasn’t renewed, that is true. But there never was a subsidy for corn growers to produce ethanol. The subsidy was a “blenders’ credit,” which when to the oil companies to blend ethanol into the gasoline.

Lastly, as long as the spread between gasoline rack prices and corn’s near-term contracts remains profitable for the ethanol producers and the oil companies, corn will continue to be used to make ethanol. Brazil can’t export enough ethanol to the US to eliminate the corn market. The corn based ethanol market is now viable without the blenders’ credit.


2 posted on 01/16/2012 11:00:51 PM PST by NVDave
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