Home / News / Livestock news / Ethanol waiver impact on livestock seen as limited
  • PRINT
  • EMAIL
  • SHARE

Ethanol waiver impact on livestock seen as limited

Dow Jones Newswires 08/15/2012 @ 8:39pm

Livestock producers hoping a federal waiver of the ethanol mandate will alleviate the pain of high corn prices may be disappointed, Iowa State economist Bruce Babcock says. Babcock said that based on current ethanol and gasoline prices, "the price of ethanol will be supported at quite an attractive level" regardless of the mandate, which would keep the ethanol industry a key force in the corn market.
 
He added that a waiver would lower corn prices by 7.4%, but that would still leave prices historically high. If U.S. ethanol consumption were somehow banned entirely, corn prices would drop all the way to an average of $2.67/bushel, Babcock said.
 
September CBOT corn rose 7 1/4c to $7.87/bushel on Wednesday.
 
 (ian.berry@dowjones.com; @enberry)

Call us at (212) 416-2181 or john.shipman@dowjones.com

(END) Dow Jones Newswires

August 15, 2012 12:06 ET (16:06 GMT)

DJ MARKET TALK: Ethanol Waiver Impact on Livestock Seen as Limited->copyright

CancelPost Comment
MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Seed Treatments
MORE FROM DOW JONES NEWSWIRES more +

Corn surges on export sales By: Dow Jones Newswires05/22/2013 @ 3:08pm U.S. corn futures settled higher Wednesday amid concerns that strong demand could shrink already ...

0Comments Reply

Margins favor more ethanol production By: Dow Jones Newswires05/22/2013 @ 10:16am U.S. ethanol production rose 2.1% to 875,000 barrels a day in the week through Friday, continuing ...

1Comments Reply

Planting surge sinks corn futures By: Dow Jones Newswires05/21/2013 @ 3:32pm U.S. corn futures settled at a four-week low Tuesday, after a surge in corn plantings last week ...

0Comments Reply
RELATED CONTENT
What's a livestock feeder to do?
Ethanol mandate should survive
Ethanol industry using too much corn, economist says
Corn use on the rise -- USDA