A major cut in the 2021-22 biofuel blending mandate in the weeks ahead will hurt corn ethanol processors and farmers.
Less ethanol will mean less Distillers (DDGS), which would spur prices. That is, without the impact of other factors. Oil is the biggie.
Greater oil demand may dampen upward price pressure on Distillers. Last week crude oil prices rose for the fifth week in a row thanks to increased fuel demand and hurricane-disrupted production.
Will oil demand outstrip production, even as plants come back up to full capacity?
Actionable insight: Follow EPA biofuel decision-making. Follow oil demand and price. See how far out you can lock in pricing on Distillers.