Support trump producers of ethanol caused an increase in maize prices
President trump is looking for ways to compensate farmers for losses from a trade war with China, yesterday announced the new aid package, which will reassure farmers, dissatisfied with the government's refusal to support over 30 small refineries, which allows the petroleum industry to abandon the obligation to use biofuels. The recent decision by trump to provide benefits to small refineries (SRE), will allow big refiners to waive the requirement to buy 10% of annual ethanol production in the United States.
corn Producers declare that this reduced the demand for ethanol billions of gallons, while its exports is suffering from a trade war with China. Therefore, the new aid package should reassure farmers.
Details of the planned activities not yet described, although last week news agencies reported that trump will facilitate retailers fuel the deployment of infrastructure for E15, which was previously intended for year round use. Also examines the growth in the 2020 mandates, to compensate for the losses in gallons through the provision of benefits to small refineries that, according to producers of corn, disproportionately benefit large producers of oil. Private sources report that the threshold mixing 10%, known as E10, can increase to 12%.
the December corn futures in Chicago yesterday rose 2% to 146,7 $/t Exports of corn for the week rose to 858,9 thousand tons, which exceeded market expectations. Overall in the season exported 5.5 million tons new crop grain, which is the lowest figure since 2004/2005 MG.
to Stimulate domestic consumption of corn in the U.S. and slowdown in production could enhance the price of grain in the new season amid increasing global supply and falling export demand.