Ethanol production slips under 800,000 barrels/day
Ethanol production in the week ended Sept. 28 dropped 3% from the previous week, to 785,000 barrels per day. That’s the lowest production pace since the Department of Energy started reporting weekly production in 2010. The slowdown puts the annual production rate at about 12.6 billion gallons.
Ford, GM clear E15 for newer vehicles
GM has signaled it cleared E15 for use in 2012 and 2013 model-year vehicles and light trucks while Ford has taken a similar step for its 2013 models, according to the Oil Price Information Service. The report also notes both automakers have concerns about using E15 in older vehicles, with Ford indicating it is safe for vehicles as old as the 2010 model year and GM recommending blends of no more than E10 in vehicles from 2001 to 2011 model years. EPA has approved E15 for use in 2001 and newer model year cars and light trucks.
FAPRI: Little waiver impact
The impact on U.S. corn prices from a waiver of mandated ethanol use could be greater in 2013-14 than in 2012-13, according to analysis done by the Food and Agricultural Policy Research Institute (FAPRI). The report also says none of the impacts are overwhelmingly negative, and in some cases result in higher projected prices compared to the baseline. An outright waiver of the ethanol mandates would reduce 2012-13 corn prices by 4¢ per bu. and 2013-14 corn prices by 17¢ per bu., FAPRI says.