Greedy with Ethanol

I thought it would be interesting to look at the following –explosive– ethanol CBOT June chart:

Ac060526_2
Source: CBOT

Where a dizzying $2.80 to $3.42 or 22 % price increase transpired in the past 2 weeks.

So, one AXM06 contract with an initial margin requirement of $2,700
would have rendered $17,980 by today; or a per contract performance of
6.66 x in 2 weeks –enough to even awake Mao Tse Tung.

I posted a while back that a 3,000x increase in production would be
required for a US mandated E10 –or a 10% replacement of gasoline by
ethanol.

In any case, I’m wondering how far up ethanol’s price could rise,
considering tax incentives and what I would call the “war premium”, or
the Prius premium paid to exert ourselves from the middle east oil
dependency?

For an E10 with a $5.00 ethanol and $2.50 gasoline price, the
combined price would be $2.75, a $0.25 difference –I think people would
be willing to pay an extra 10% for an E10 blend… any ideas?

I guess I’m too greedy…