Christopher Sakai: Okay, thanks. As you head into winter can you comment on how an increase in the price of natural gas will affect profitability?
Zafar Rizvi: Yes, I think it does really we are already analyzing it journey we try to make sure that we have at least enough get natural gas before we got into that plan, but you can see it’s Nymax is trading today it’s a $6.93 and last, last month this was $6.35 and last year it was $5.42. So there $1.50 change and that’s change since that happened and it’s consistently continuously, we see the natural gas is although there is enough natural gas in this country. I think basically reaction is due to the European situation or Ukraine war again since that happened at the time natural gas prices start going up and that makes really major impact if we look at it actually in calendar year it was about $2.08 average and 2021 it was $3.84 average.
And now for this calendar year so far, is a $6.64 average. So this, and we don’t know what happened in 2023, but that certainly is affecting the bottom line as Doug mentioned is a 56% increase. So that takes away your 56% of the portion of the profit.
Christopher Sakai: Okay. Thanks for the answers.
Stuart Rose: Thank you.
Operator: Our next question comes from Pavel Molchanov with Raymond James. Please proceed.
Pavel Molchanov: Thanks for taking the question and you provided some useful perspective on natural gas, let me zoom in on corn. When we look at the futures curve, it basically points to $5, $6 a bushel practically forever and we went through a decade pre COVID with $3, $4 is $6 corn an your view going to be the new normal now on a permanent basis?
Zafar Rizvi: I think it seems to me that at this stage, at least the area where we have seen what country probably going to continue to trade that level, but the major problem is that area is where you have drought, which I had mentioned earlier in my prepared marks, those areas like South Dakota, Nebraska and Kansas and Texas. Texas is already deficit corn area, but these area is certainly due to the drought the basis, are very high. You can find somewhere basis are $50, $60 or $80 even though we have seen a $1.20 basis for the corn basis. And if the corn is going to leave some area like say North Dakota this year has a bumper crops last year they didn’t have that great. I mean Annapolis has a great crops this that area and Illinois has great corps.
So when you are shipping these corn from one area to other area by rail, the rail cost about some we are depending on the destination. But if you look at if you send it from North Dakota to Texas it’s about $1.60, just to ship per bushel. And on top of that they’re going to be $0.60, $0.70 or maybe $0.80 on a basis. So if you are delivering $1.60 plus paying $0.80 basis so $2.40 to deliver a corn in those Texas or in Nebraska in other area, which is further away, would be very difficult for some of these ethanol facility to continue to produce at that corn level price.
Pavel Molchanov: Okay, let me turn to our regulatory topic. It seems like it’s forever, we’ve been talking about E15 on a year-round basis and I know there is a new bill from Senator Fisher in Nebraska to put a legislative authorization on that without going through the EPA waivers, you it’s a pay that bill has a good chance of passing. What do you think?
Zafar Rizvi: I believe this time looks to be, is the good surpassing because the most all the players are agreed seems like agreed, I should say, seems like they agreed that E15 will not be bad idea. So if that path I think that will be great help, because if the pumps continue to supply 12 months in a year, then people will convert that because I have seen some several pumps in actually in Illinois, Nebraska and other area. What, they call it E88, they are selling, and you can see the price difference almost $0.15 to $0.20 sometime difference than regular price. So people are using that. So I think if these pumps can produce regular sell basis 12 months. I think this will catch up more and more in depth. That will be very certainly will increase another 5% ethanol demand.
Pavel Molchanov: Okay and then lastly, you mentioned exports and obviously kind of vary from quarter to quarter, but your general impression on the export window to China where do things stand on that?
