Last week, rumors swirled about possible changes coming to the Renewable Fuels Standard (RFS), including changing the point of obligation, or who is responsible for blending.
According to Chip Flory, editorial director of Pro Farmer, the “supposed proposed changes” can reach wholesale blenders or retailers, but the details are unclear. Carl Icahn, owner of the refinery CVR Energy and friend of President Trump, wants that change in the point of obligation.
However, Gov. Terry Branstad (R-Ia.) told Iowans Monday the rumored changes to RFS won’t happen, according to Politico.
Since the corn market isn’t concerned about the point of origin, the market is concerned about corn demand. Ted Seifried of Zaner Ag Hedge says if E15 is around all year, roughly 500 million more bushels of corn would be added to demand.
“It’s about 10 percent of our corn use for ethanol,” said Seifried. “That could really help the corn demand market. The last five or six year, our demand has been somewhat stagnant after the big jump we saw. It would be nice to see that starting to go higher once again.”
What are the logistics of Mexico to stop buying corn from the U.S.? Bob Utterback of Utterback Marketing says the bigger story is that “we’re moving in the right direction of deregulation.” Watch his comments above on U.S. Farm Report.