We can’t seem to get away from the ethanol story. We noted the chances of ethanol, i.e. alcohol, replacing petroleum as the dominant fuel source. Then we noted the effect greater ethanol production may have on sugar prices.

John M. Berry at Bloomberg.com notes the political power behind the drive for ethanol. This includes a tariff on imported ethanol and a subsidy for domestically produced ethanol. In short, Berry does not believe that ethanol will displace petroleum any time soon.

The Stalwart takes issue with those who try to push ethanol, or for that matter other alternative energy sources, as a font of jobs given the poor acceptance of ethanol by the market to date.

Myra P. Saefong at Marketwatch.com reports on the effect current, and projected, growth rates in ethanol production may have on the corn market.

The ethanol story is an interesting one in that it lies at the intersection of politics, economics, and the stock and commodity markets. We will continue to comment as news warrants.

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