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RFA: Signs of corn & ethanol demand destruction

The Renewable Fuels Association says demand destruction for corn and ethanol is already happening as a result of RFS waivers being issued by the EPA. RFA vice president Geoff Cooper says there are lots of reports that the EPA is handing out small refiner waivers to virtually every refiner that comes knocking, “We’ve had news reports that refiners as big as Andeavor, which is the nation’s fifth largest refiner, companies like ExxonMobil, companies like Chevron, have been applying for these so-called refiner waivers.”

Cooper says the RFA questions the criteria the EPA has used for the waivers, how many exemptions have been issued and what volume of blending has been lost, “RIN prices have crashed from around 95-cents near the end of November of last year to about 30-cents today. So, you know, we’ve been raising obvious concerns about demand destruction that has resulted from these EPA actions.”

Cooper says Ag Secretary Sonny Perdue used the same terminology last week about demand destruction.

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