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Central Illinois | From Reuters
WASHINGTON, Oct 5 (Reuters) - A U.S. House bill would
require a reduction in the federal mandate to use ethanol
whenever corn stocks begin to tighten.
The Environmental Protection Agency would be required to
reduce the Renewable Fuels Standard if the projected corn
stocks-to-use ratio is below 10 percent. EPA would forecast the
ratio twice a year; on Aug 1, just before harvest begins, and
by Nov 30, when the size of the harvest is clear.
If the August 1 estimate is below 10 percent, a reduction
would take effect 30 days after an EPA announcement and be in
effect for the rest of the calendar year.
When the November 30 forecast is below 10 percent, a
reduction will be in effect for the following calendar year.
Reductions would increase in size as the stocks-to-use
ratio declined.
Under the bill they would be:
Ratio Reduction
(in percentages)
Above 10 None
7.5-10 10
6.0-7.49 15
5.0-5.99 25
Below 5.0 50
Lead sponsors were Reps Bob Goodlatte, Virginia Republican,
and Jim Costa, California Democrat. There were 22 other
sponsors, from the U.S. Northeast, South and West.
Current estimated 11/12 stox/use is 5.3% so if bill passed could add 1.25B bushels of corn to the carryout. Will it pass the house and senate is the question....Also we are heading into an election year so we could see some major surprises.
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Corn market scenario with new Ethanol Bill Proposed
