- #176
mheslep
Gold Member
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I was told recently that a large chunk of US bio diesel, not ethanol, producers expect to get out of the business soon. I don't know why, maybe soy has become too expensive to raise vs other crops. Maybe its just a consolidation in the industry.Ivan Seeking said:What do you mean by the bottom dropping out?
Nearbio.com lists 1599 operating biodiesel stations. Oregon just mandated that all diesel will be a minimum of B5. Washington is all B2.
Edit: Yes, looks like displacement by corn ethanol:
http://www.ethanolmarket.com/PressReleaseUofIllinois120107U.S. crop producers made dramatic shifts in acreage in 2007. The shifts were motivated by rising corn-based ethanol production and high corn prices, rising wheat prices, and a surplus of soybeans.
The acreage shift was led by a 17 million acre increase in feed grains, including 15.3 million more acres of corn. Winter wheat acreage increased by about 3.1 million and harvested acreage of hay was up by nearly one million acres. These increases were accommodated by an 11.9 million acre decline in soybean plantings,
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