Replies to post #27973 on Alto Ingredients Inc (ALTO)

[cartonet]

It's right here, Figure 1:

http://farmdocdaily.illinois.edu/2014/12/prospects-for-ethanol-production-profits.html

[pavement13]

In 2008, ethanol did follow gas down. But 2008 wasn't a supply issue driving down prices of oil. It was a demand issue. The world economy was in an extreme recession, people were losing jobs, and nobody was driving. Prices of everything dropped, not just gas and ethanol. We had deflation at that time. This time around, gas has dropped because of oversupply, not lack of demand. But there is not an oversupply of ethanol. And demand will grow because less expensive gas will lead to more driving and increased ethanol use. Just looking at gas vs ethanol prices this year shows they don't consistently track each other.