July 3

7/3 – On June 21, the Environmental Protection Agency issued its new mandates for renewable fuel that U.S. refiners must mix with gasoline and diesel for 2023, 2024, and 2025. Although those volume mandates were increased modestly for 2024 and 2025, they fell far short of the expectations of the ethanol, biodiesel, and renewable diesel industries. In a refreshing nod to logical thinking, the EPA is holding its ethanol volume mandate flat at 15.0B gallons per year because it is trying to better match mandates with actual gasoline usage – and gas usage is projected to fall in coming years due to better gas mileage and more EVs. A spring drought had sent corn futures from $5.55 per bushel in mid-May to $6.71 (6/21), but the ethanol news (and a little rain) has helped cut corn to $5.54. (6/30). Soybean oil futures also took a hit, dropping to $.5563 per pound on 6/21, but have recovered back to $.6501. (6/30).