Purdue University economists announced August 16 that a partial waiver of the federal renewable fuel standard could slightly reduce corn prices, but not enough to make a significant difference for livestock producers facing higher feed costs. A partial waiver provides flexibility to refiners and could reduce corn prices by as much as $1.30 per bushel, which are currently above $8 per bushel because of the intense drought. The study, Potential Impacts of a Partial Waiver of the Ethanol Blending Rules, echoes one from an Iowa State University economist suggesting that corn prices might fall as much as five percent with a total RFS waiver.
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Partial RFS waiver has moderate price impact
- Mintz Levin Cohn Ferris Glovsky and Popeo PC
- David Leiter and Sarah Litke
- USA
- August 19 2012
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Siphokazi Cilibe
Contracts Manager
PHD, a division of The Fuel Logistics Group (Pty) Ltd
