AM Comments 10/11/13
Friday, October 11, 2013, 7:59 amSubmitted by: Dustin Weiner
Good morning!
Lower markets, a lot of news out there reacting to an EPA proposal to lower the RFS mandate for 2014 to blend 15.21 billion gallons of renewable fuels (compared to 16.55 billion gallons in 2013) amid complaints from refiners that statutory mandates would exceed their ability to blend it into fuels without putting engines at risk. 
These numbers imply that the mandate for regular corn ethanol would drop to 13.0b gallons in 2014 from 13.8b gallons in 2013. Not sure how bearish this really is to pure corn ethanol as this is just a mandate, not a cap. If there is market for it corn ethanol, and there is a margin in it, we will keep producing it and blending it. There are a lot of moving parts to this proposal and it still needs to be voted on before anything can happen and… the govt isn’t open.
FYI there are normal market hours on Monday (Columbus Day) even though the banks are closed.
Opening Calls
Corn 3 to 5 cents lower
Soybeans 4 to 6 cents lower
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