| SodbusterIII - 2/13/2024 03:45
Appears the market is treating it like a waste product as of now in this country. Until that changes, it's not anything I would care to be on the long side of.
Since ethanol is an oxygenate and competes with fossil fuel oxygenates such as Benzene, Toulene, xylene (sp?) etc.. natural gas can be an approximate proxy for these NGLs.. thus when natty is lower.. they can be also.. (not 100% but..).
So this could be somewhat of a headwind.. flip side.. natty is used in nitrogen fertilizer production.. now way cheaper.. and process heat in ethanol plants.
Push back on this narrative.. Crude Oil is still.. “firmly higher” with military operations ongoing in key supply areas of the Middle East (some day do we wake up to a spike?). Furthermore, the summer driving season.. and higher gasoline demand.. is just around the corner.. (last call on locking in fuel prices before the winter blends go away.. with cheaper inputs.. just sayin.)
EV sales suck.. ICE engines are not going away.. unless there’s a recession.. demand will return.. supporting prices.. including probably corn.. as ethanol demand is poised to explode given SAF etc.. “90 billion gallons of demand by 2050.” We’re cranking out like 15 here in the US.. plus maybe 12 more elsewhere.. so.. production has to triple.
”things which make you go hmmm.” |
Any opinions on natural gas?
