Ethanol Blog

Surprise, Surprise EPA Delays RFS Ruling

Rick Kment
By  Rick Kment , DTN Analyst

Overall final RFS adjustments of 2014 ethanol blending limits will be pushed off past 2014 and into 2015. On one hand, this move is not totally shocking, given that the talk about changing the limits for 2014 has continued to be delayed. This is creating some additional uncertainty through the complex, but with any adjustments to the rules likely to be decreased blending activity of ethanol for 2014, this further delay is helping to draw additional support into nearby ethanol contracts.

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The market tone remains extremely firm at the end of the week with aggressive spot market gains over the last two sessions erasing the nearly 20-cent loss seen Wednesday. With this latest announcement that any "final" rule changes will be seen after Jan. 1 adds additional uncertainty as to how and when a more permanent fix will be seen concerning blending limits of ethanol.

It will continue to be a challenge if blenders, processors and other energy market entities continue to have to work in arrears in order to meet the RFS standards. There also remains the question just how much outcry, and also litigation, will now develop concerning the move to keep kicking this decision down the road. For now, ethanol futures are drawing active support in a "no news is good news" type of mentality. But that could quickly change if and or when a decision is finally made.

Rick Kment can be reached at rick.kment@dtn.com

(ES)

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melvin meister
11/24/2014 | 10:54 PM CST
Look on the bright side $2.19 E-85 in West Point NE. Whats not to like?