Tara Farms - 2/7/2016 13:52

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 ??

This makes so much sense to me. Others may argue it wasn't this simple but maybe it was. Great post.