World Perspectives

Few Ethanol Options; Tsk-Tsk, Tusk; Look Out ERS

Few Ethanol Options Reuters reports that President Trump met today with USDA Secretary Sonny Purdue and EPA Administrator Andrew Wheeler to receive options on boosting the disappearance of ethanol. Plants are shuttering, and the EPA’s granting of hardship waivers from the ethanol blending requirement is being blamed. Rumored options include reversing the waivers or transferring the obligations to larger entities. Neither idea is a particularly good plan. Optimally, more of the fuel would be exported, particularly given its attractive price relative to gasoline – a 15 percent discount FOB/Gulf. The export market must grow faster, or else capacity will have to be realigned with domestic demand.    Tsk-Tsk, Tusk The E...

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