December 26, 2011

Expiration of ethanol credit could help ease corn prices

Corn users could see some softening in prices if the tax credit supporting the ethanol industry – the Volumetric Ethanol Excise Tax Credit (VEETC), the "blenders’ credit" – expires on schedule at the end of the year, according to an economist who follows the ethanol market closely. "With loss of the VEETC incentive of 45 cents a gallon of ethanol added to motor fuel, we should see demand soften and more price competition among the plants emerge," said Tom Elam of  "It’s going to be hard to pin down a number, but something in the range of 20 cents a bushel or somewhat higher is likely."  Read More


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