EPA news sinks corn market
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.
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(END) Dow Jones Newswires
October 11, 2013 09:13 ET (13:13 GMT)