Originally Posted By: nap
Speaking of price, what mechanism prevents ethanol producers to jack up the prices when they see fit?
Problem is, so many have little clue how markets work. Ethanol is traded on the commodity exchanges. The Producers have nothing to do with pricing. They get what the market is willing to pay for it, just like oil and refined fuels. It is just like any other commodity. Copper mines don't set copper prices, commodity exchanges do.
Speaking of price, what mechanism prevents ethanol producers to jack up the prices when they see fit?
Problem is, so many have little clue how markets work. Ethanol is traded on the commodity exchanges. The Producers have nothing to do with pricing. They get what the market is willing to pay for it, just like oil and refined fuels. It is just like any other commodity. Copper mines don't set copper prices, commodity exchanges do.