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The last act in this economy Obama administration today to suspend -- requirement to put effort on your gas.
And they say it's pushing up the price of -- just way too much to -- -- an ethanol plant will produce.
They're bringing down the price of gas.
Hey Jeff who's right.
You know this is one of those Tracy where there's two sides to every story.
The ethanol producers and of course I'm sitting on top of an ethanol plant here in Lena Illinois -- right now massive facility here.
And if you look at the price of ethanol right now.
They would make the point that the price of ethanol now it's much cheaper than gasoline about 260 -- Much -- the general manager Atkins energy ethanol plant here in -- cheaper than gasoline.
Absolutely and you don't think.
The need for ethanol here is driving up the price of corn beyond what typically it might mean maybe a couple of percent.
I think generally the commodities you're gonna have demand and that's gonna drag things out but from our perspective it from the capital industry's perspective.
We're cutting back production and we here at the plant we've got back.
By about -- -- percent below what are typical run rates are.
And that's helped you know short term but also long term perspective.
That's helping mixture of us wiser -- there in the future I was gonna say -- supplies are tight -- -- take a look at.
Corn and I'm watch -- -- watch my step up your development -- -- -- fall off the top of the elevator.
If you look at corn right now another big rally today and other twenty plus cents up to the upside.
And you know they do make the point here they have reduced their capacity to reason they're able to do that.
A Tracy is something called wins these are essentially credits.
That the lenders got for blending more ethanol into the gasoline and they're required to.
So they're able to use those credits and not actually have to make more ethanol and blend more and so they say it's pretty flexible the demand for corn and they're not competing directly.
But the -- The debate will continue Jeff Flock and I know you'll be covering that Jeff black out --