What's this blend wall term that's tossed around in the corn fields of this country? Basically, ethanol demand is maxed out at the current 10 percent blend rate and production has hit a ceiling. So, unless either gas demand increases or the blend rate goes up, there's just no need for any more ethanol at the pump.
Four straight months of record-breaking ethanol production has led to an oversupply of the gasoline additive and a sharp decrease in prices, as is usually the case when supply exceeds demand. But the U.S. Department of Agriculture (USDA) has an answer to falling prices that could make farmers happy and it's a
We see an even easier solution that would be utilized in most other industries and it boils down to simple economics. If production exceeds demand, stop making so much. We think we're on to something here. Maybe we could fix the ethanol problem by buying more gas. How's that sound for a really
[Source: DomesticFuel | Image: Drewzhrodague - C.C. License 2.0]