Replies to post #22916 on Savvy Trades and Investments

[Mermelstein]

PEIX - ethanol prices really have nothing to do with the price of oil/gas, although for some reason they seem to be tied together.

The EPA mandates a certain percentage of ethanol must be in each gallon of gas. So as long as people are buying gas, ethanol will be in demand. Not to mention new environmental regulations in China and India will only further increase demand for ethanol.

Corn is really the main variable here.