Corn futures are down more than 1% after the EPA
proposedlowering the amount of renewable fuel required by refiners when making gasoline.
Earlier this year, we discussed how the high requirement was nudging gas prices higher by running up costs on refiners.
Because of trending declines in gasoline demand, refiners aren’t making enough fuel to match the amount of ethanol the government mandates they must add to their blends. As a result, the price on special dispensations, called Renewable Identification Numbers or RINs, to get around the requirements began to climb.
Plus, the AP’s Dina Cappiello and Adam Goldman had a blockbuster report this week on how the government’s renewable fuels push has created all sorts of horrible unintended environmental consequences, including polluting drinking supplies and wiping out habits.
So, today’s news may be a net plus.
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