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Red River Valley | No, what the government mandate did was tell the speculative trader that they do not need to worry about being long the market because economics will not rule if or when ethanol shuts down. the mandate states it must be produced and it is up to the end usurer to make sure that the producers have profit enough to continue to production.
Just think about 2012 for a minute -- In June of 2012 many on this site have claimed that already then the crop was going to be sub 10bb. had the EPA come out at that time and waived the Mandate for 1 year what would have been the results ??
how much different would have the farm economy looked going forward ??
how would have that flattened the volatility of Mother nature ??
looking back to that time frame it show's that as we moved from the $5.20 area to the $5.50 area that corn exports dropped off the very rapidly.
without the mandate who was going to push pricing beyond that point - with the mandate the funds had no worry because somebody besides them needed to be sure that ethanol got produced
Edited by Tara Farms 2/7/2016 14:00
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It's not the market
