Ethanol giant VeraSun declares bankruptcy. The Brookings, S.D. based company, founded in 2001, went public in June 2006 amid perfect market conditions. Corn was cheap, gas cost a bundle and refiners were clamoring for more ethanol to use as a cleaner-burning alternative to the additive MTBE. After news of the possible Chapter 11 filing was released Tuesday, VeraSun's stocks fell from more than $1 to 73 cents and to 49 cents on Wednesday.
The benefits of this fuel source marginal at best and to be able to produce ethanol at a reasonable price is totally dependent on the price of corn. This bankruptcy proves that and if you've been in the cornfield much you know grain prices have been fluctuating considerably. The local elevator stopped posting the price of corn and beans on a sign along the highway during the day and now put them up at the end of the day showing the closing price for that day.
Ethanol from corn is ridiculous, but better in our tanks than in our veins. PBS showed an independent documentary called "King Corn." I recommend it.
ReplyDeleteOften wondered what went on behind the scenes in the cornfield and in DC to let this become a reality when the facts showed it was not even close to the best option. Bastards!
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