Is there a corn shortage?
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Is there a corn shortage?
Called up Valero in Fairfield today about why their E85 pumps have been down for over a month now, the guy told me their no longer receiving shipments and probably wouldn't be anymore. Can anyone validate this or know of anymore details?
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There was supposed to be a shortage this year due to the increased amount of Ethanol mandated for pump fuels.
Now there is a lot of "talk" about bumping that to 15% for all US pump gas.
Now there is a lot of "talk" about bumping that to 15% for all US pump gas.
Last edited by aboothman; Dec 6, 2010 at 09:07 PM.
E85 at almost every pump
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No issues with availability down here in Oakland. Propel has E85 readily available at all pumps.
Apparently the station in Fairfield has been super spotty for a while.
Apparently the station in Fairfield has been super spotty for a while.
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Rising Corn Prices Bring Fears of an Upswing in Food Costs
Analysis from the International Food Policy Research estimates that rising demand for ethanol caused 40% of the rise in corn prices from to 2007, and analysis from the CBO estimates that rising demand for ethanol caused 35% of the rise in corn prices in 2008.[2] This is because rising demand for ethanol directly translates into rising demand for corn, at least until alternative biofuels become more price competitive. Demand for ethanol is directly related to the ratio between oil and corn prices – how much ethanol can be sold for (essentially the price of oil) divided by the cost to acquire corn (corn prices). If this ratio is higher than 90%, manufacturers will earn enough money to cover the cost of building an ethanol plant and to use it.[2] However, governments across the world have implemented subsidies that make it profitable to produce ethanol even when that ratio is below 90%.
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