Alto Ingredients Inc (ALTO)

[Rule_62]

I'm wondering if this isn't a repeat set-up of the scenario we saw from September to November? No one wants to buy now because they all predict lower ethanol, so they drain their internal supplies, hoping to replenish at lower prices. Problem is, everyone then starts buying at once, at the same time that export demand surges again.

BTW I saw an earlier post questioning whether Brazil will again become a factor.

1 cubic meter of ethanol (Dec futures contract, settles the last day of the month) sold today on the Brazil market for $1,209 BR
$1,209 BR = $448.49 US
1 cubic meter = 264 gallons
$448.49/264 = $1.69/gal

January futures worked out to be $1.74 US/gal

Today's spot price was $1.99 (Anhydrous, quoted San Paulo)
That's before the cost of shipping.

Brazilian ethanol (quoted in Real/cubic meter)
http://www.datagro.com.br/english