Renewable Fuel Standard Mandate and Genetically Modified Corn Rejections

Energy Protection Agency (EPA) of United States proposed a policy revision on RFS mandates on 15th Nov 2013, which may reduce the consumption of corn ethanol from 14.4 billion gallons to 13 billion gallon in 2014. This was much larger than anticipated by the industry and more aggressive in dealing with blend wall constraints. Reduction in mandates will reduce corn ethanol production by 1.4 billion gallons equivalent to 500 million bushels (12 million MT) of corn. Hefty supplies of corn across globe in current marketing year coupled with fall in ethanol demand to increase the ending stocks of corn at US potentially by 30% by the end of 2014/15.