US Ethanol Mandate Waiver Would Not Destroy Corn Demand: Deutsche Bank
(Platts) A waiver of the US ethanol mandate would not destroy corn demand because current gasoline blending economics still favor the use of the corn-based biofuel, Deutsche Bank’ analysts Michael Lewis and Christina McGlone said in a research note Monday.
Ethanol is currently $0.40-0.50/gal cheaper than gasoline and around $0.50/gal cheaper than other alternative oxygenates.
In the US, a minimum level of ethanol is blended into conventional gasoline to meet oxygenate requirements necessary for compliance with national CO2 emissions standards. READ MORE and MORE (FarmDocDaily) and MORE (OilPrice.com)