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EPA news sinks corn market

10/11/2013 @ 8:45am

Corn futures fell 0.9% to the lowest in 37 months after a leaked report said the Environmental Protection Agency may seek to reduce its biofuel blending mandate, which would cut demand for the grain. Soybeans also declined while wheat gained.

An EPA proposal obtained by Reuters reportedly reduces the target for biofuel use at 15.21 billion gallons in 2014 from the 18.15 billion gallons originally set by a 2007 law known as the Renewable Fuels Standard. Of that, 13 billion gallons of ethanol, which is made from corn in the U.S., would be blended into gasoline, down from the current mandate of 14.4 billion, according to the report.

The report is preliminary and hasn't yet been proposed, and still would require approval by the White House Office of Management and Budget. Bob Dineen, the president of the Renewable Fuels Association, said on the organization's website that the leaked document "does not represent the final determination and has not yet been subjected to interagency review."

With electronic trading paused until the open outcry session starts at 9:30 a.m. EDT, Chicago Board of Trade corn for December delivery fell 4 cents to $4.34 1/4 a bushel.

Soybean futures for December delivery on the CBOT fell 6 1/4 cents, or 0.5%, to $12.81 3/4 a bushel in overnight trading. Wheat futures for December delivery increased 1 1/4 cents, or 0.2%, to $6.86 3/4 a bushel in Chicago.

Write to Tony Dreibus at tony.dreibus@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 11, 2013 09:13 ET (13:13 GMT)

DJ Corn Falls to 37-Month Low on Report That EPA Wants Lower Biofuel Mandate->copyright

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mark guildenzoph 10/11/2013 @ 8:46pm The Renewable Fuel Standard is a law that went into effect in 2007 when the country decided going green was the best foreseeable future for our enviroment as well as are other natural resources that are being depleated such as oil. There is no f****** way that this bill will pass. Just the fact that these traders are smashing (rallying) these prices further is another BS reason for profit-taking on Friday. We are talking about a leak of a possible bill that is. You all should be so ashamed of yourselves how far are you all willing to take this? After combining all week in Illinois have yet to yield above 40bushel soybeans, down from your inaccurate prediction by quite a bit. However, I'm under the impression this is happening all over. So let me put this in simple talk for you under achievers same yield as last year the worst drought in 25 years, but somehow almost 5 dollars less you do the math or should I do that as well. Insurance, insurance, insurance, do you all no how to say insurance. Thanks either way to another record breaking harvest wow!!!

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10/11/2013 @ 12:31pm so you idiots are trading rumors now and not facts? Oh wait you do that all the time wow you guys are morons!!!!

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