Stratos Renewables Inc. (SRNW.OB) – Sugar Ethanol is Significantly Less Correlated to Crude Oil than Other Ethanol Crops
Crops used in the ethanol making process are becoming increasingly correlated to the price of crude oil. Crops like Corn, Soybeans, and Rice rise and fall with the price of Crude Oil. In particular is Corn. Demand for it is increasing at the same rate as sugar yet Sugar prices are not seeing the same price increases. A lot of this has to do with sugar stocks and the type of crop. Sugar supply is not nearly as constrained as Corn crops. An analyst for F.O. Licht stated, “Projected stocks-to-use ratio for corn is 13.1% in 2007-08, but 54.8% for…