I disagree with Robert that ethanol is necessarily a buy. Many of the ethanol producers will continue to produce ethanol even at a 20 cent loss because it is cheaper than competely shutting down.

Nate, some are shutting down, yet the mandate marches on. I think prices have to rise. Ethanol producers may continue to lose money, but ethanol itself should rise unless 1). Energy prices collapse; 2). Corn prices collapse; 3). The mandate is repealed.

I don't strongly disagree with you - just pointed out that a good deal of production will stay online despite a loss. And at some finite price for ethanol the gas stations won't want it because customers will choose regular gasoline (if they can choose that is).

This whole thing is disheartening. You and I (and many others) have been writing for several years now how this is a spent bullet when we need dry powder in energy policy. Yet we never made a dent. If something as clearcut as this can't be rejected, what hope do we have on the tougher decisions?