Corn/Ethanol Paradox

Before I get on with the question of the day...

Here is a photo of some of the new baby goats born on the farm this winter... for some unknown reason they were congregating around a mama goat that was feeling under the weather with hoof problems (after a hoof trim and a soak she is feeling much better thanks). I thought it was just too cute:


OK. Back to business.

The Mad Scientist and I have been knocking this problem around for a couple of months now, without resolution. Maybe one of my brilliant readers will have a better grasp on the issue.

Here it is:

Corn ethanol is both an alternative fuel AND a reformulated gasoline blending component.

AS SUCH... Will demand for ethanol go UP or DOWN if gasoline supplies decline? Think about it... as a blending component dependent on gasoline volumes for its demand... as an alternative fuel independent of gasoline....

Getting this right can make (or break) a career. Why? Because we are currently using 42.5% of the U.S. corn crop to make ethanol. Either we are going to have too little corn or too much corn by a very large margin.

Any math/science inclined folks out there that have something to add, we are all ears. Yes, we already have an opinion, and no, we don't want to share it with you now as it might lead people away from their original thoughts.

In the end we will be very happy to share with you how we intend to play this provided that you understand that this is a big boy's game and we may very well be wrong...