Spot ethanol prices were flat to lower in thin trade early Friday amid soft demand, although the downside was curbed by the Environmental Protection Agency's rejection of petitions from several states to waive the Renewable Fuel Standard.
The states sought the waiver due to concern this year's widespread drought would curb corn supply and harm certain industries that count on corn. EPA rejected the argument, saying waiving the mandate would only reduce corn prices by approximately 1%.
Economic analyses also showed waiving the mandate would not affect household energy costs. "The EPA decision is helpful to ethanol because it means demand won't be affected the way it would if the waiver was granted," said a trade source.
George Orwel can be reached at email@example.com.
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