You are assuming the economics for corn-based ethanol resemble a free market. They do not.
Government regulation, both state and federal, ensure that fuel distributors have to buy a certain amount of ethanol. Lower fuel prices means more demand for gasoline. Higher gasoline sales means more demand for ethanol to blend with gas.
That is not to say low oil prices won't hurt grain prices. There are a lot of countries that buy US grain with their oil dollars. If they can't produce oil profitably, they can't buy our grain.
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Today's Featured Article - Show Coverage: Argyle and Mt. Pleasant Labor Day Weekend Shows - by Cindy Ladage. The last fling before summer fades into fall and we get busy in the fields are the annual Labor Day tractor shows. Beginning on September 5th and running through the 7th, the Argyle Antique Gas and Engine Show is held at the Argyle State Park. Located in West Central Illinois, the pine forest was the setting for the opening of the 22nd show. This year we decided to try to sell a few tractor parts, literature and wrenches to offset my husband's buying sprees. Saturday
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