With crude oil, gasoline, fossil diesel, soybean oil, shelled corn, ethanol, and DDGS all in the same $/MMBTU units, they can be graphed on the same chart. Crude oil prices serve as a good benchmark for energy prices. The y-axis scale for $/MMBTU are the same for most charts so the charts can be compared.

The general trend in these graphs is that since October 2007 the weekly prices have been increasing. Compared to diesel fuel, soybean oil, and biodiesel fuel prices, the crude oil price series looks almost flat.

The energy value chart of gasoline, corn, ethanol, and DDGS includes the benchmark energy value series of crude oil. Compared with the biodiesel energy value chart, it is apparent that the energy value has not rising as dramatically for ethanol as for biodiesel. On a $/MMBTU basis, gasoline has had a lower energy value (and is a better bargain) than ethanol through most of July 2008. Not included in this energy value metric are the environmental benefits of burning ethanol in gasoline rather than straight gasoline. However, on a BTU-basis, gasoline that is 35% more expensive (in $/gallon) is a better bargain per BTU in part because gasoline has a higher BTU energy value per gallon.

It is interesting to me that on an energy value basis, corn has a lower $/MMBTU value even at record prices of $7.25/bushel than crude oil at $145/barrel. This implies that on an energy value-basis it is still a great bargain for energy. As a former hog farmer and industry champion of livestock for many years, I know the livestock industry is suffering economically from the double whammy of high energy prices and high grain prices. Never the less, with crude oil over $145/barrel, $7.25/bu corn is an energy value bargain.

DDGS (dried distillers grains and solubles) are included in this value series. DDGS are a product of the corn-based, dry mill ethanol process and nearly all DDGS go back into the feed supply system. In the current politics of ethanol, the volume of corn used in ethanol production is often discussed as though it is no longer available for livestock feed and other uses. About a third of the volume of corn used for ethanol goes back to livestock feed in the form of DDGS.