Corn ethanol waiver's effect on corn prices uncertain
"To the extent that refiners and blenders do have flexibility with their use of ethanol, a small waiver could reduce corn prices around 47 cents a bushel, while a large waiver could reduce it as much as $1.30 a bushel, depending on economic conditions."
Should a waiver lead to reduced ethanol use, the EPA could have an influence on who bears the brunt of the drought-related corn losses, Tyner said.
"The total amount of harm from the drought is in the tens of billions of dollars," he said. "The EPA cannot change the loss. It can only potentially redistribute it among the affected parties: ethanol producers, livestock producers, corn growers, and domestic and foreign consumers."
Thursday's webcast with Tyner, Hurt and Taheripour will be at 11 a.m. EST. To view the free online event, log onto the Farm Foundation website and click on "Register now." Early registration is encouraged.
For those unable to view it live, the webcast will be archived on the Farm Foundation website.