Keeping corn prices up.
Check it out:
While the lowering of biofuel mandates from legislated levels in the EPA’s proposed rule for the RFS in 2014 was seen as a blow to domestic ethanol and corn producers, strong ethanol exports have proven to be a bright spot for the industry. Strong margins have kept significant capacity in ethanol production, contributing to stable corn grind demand as covered by Darrel Good in a post last week. Current expectations for the 2013/14 crop year are for around 5 billion bushels of corn-for-ethanol demand. Depending on domestic ethanol use and the final RFS rule ethanol exports, continued strength in foreign demand could lead to ethanol exports in the range of 600 million to 1 billion gallons.