|Pruitt The Ethanol Hater|
Trump's nomination of Oklahoma Attorney General Scott Pruitt to head the Environmental Protection Agency was the news that caused the flight from the RIN market, and with some reason. Pruitt has been an aggressive critic of EPA during his tenure as AG, particularly focusing on the Renewable Fuel Standards (read: corn-based ethanol) which in 2013 he called "a flawed program," adding, "the evidence is clear that the ethanol fuel mandate is not working." Whew. With a guy like that in the driver's seat at EPA, I'd be pitching my ethanol certificates in a hurry, too. As a floor trader and broker in both stock options and ag commodities at the principal Chicago exchanges, as well as a cattle feeder here in South Dakota, for many years, I know first hand the effect of ethanol mandates on corn production and pricing. More than a third of U.S. corn is used for ethanol. Here in South Dakota, about 6 million acres are dedicated to corn production. At 5 or 6 hundred bucks worth of corn coming off each acre, you can see the connection between ethanol markets and corn prices.
Our Governor Daugaard is aware ("concerned" might be a better word) of the situation. A
|This Month's Corn Price|
Look Out Below